I guess he can afford to be “tone deaf” not only because it’s a relatively small position for him but also because he has a single digit cost basis…
Posted by Jesse Felder on 05/22/2008 at 05:18 PM
Warren Buffett, Tone Deaf Billionaire
Thursday, May 22, 2008 - 11:22 am
And additional 10% decline in the shares of Moody’s Corp (MCO-NYSE) today might not bother Warren Buffett, but shareholders of more modest means might be starting to feel a little pain. Hopefully the stock will hold its 52-week lows, but the the CPDO scandal is showing no signs of going away.
Moody’s behavior seems to be no different than many of the SellSide shops during the equity bubble; they sold out their integrity, and found a way to hand out ratings that would result in fat fees.
Buffett, the largest shareholder, seems unperturbed, but might be missing the bigger picture here…
I would doubt very much that any events of any one day will permanently change the franchise value of Moody’s Warren Buffett
The statements were made yesterday, just as the story picked up steam. And while Buffett’s legendary patience will likely be rewarded at some point, he, and the legion of clueless SellSide analysts, are missing the point. The scandal could be signs of even bigger problems at Moodys, and it is the final nail in the coffin for many capital market participants in the U.S. and Europe, at the least.
We’re mad as hell, and we’re not going to take it any more!
Normally a chart like this would pique my interest, long, but lets hope it sends a signal to Buffett. If he wants to live up to his reputation, he might want to consider offering more than flip comments over a debacle he is clearly underestimating.
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Update 12:50 PM
Moody’s: Warren Buffett won’t seek mgmt changes at Moody’s - DJ
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Comments:
Maybe he is just too busy flirting with women half his age.
Moodys has gone from bad to worse. Looks like he is not planning to get involved, not even rattling a cage.
I worked there briefly in early 90’s. The people had a great deal of integrity, this is sad to see.
Stock should propbably hold 52 week lows here, but it has been almost a year of headline risk dogging the stock.
Posted by on 05/22/2008 at 06:56 PM
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