Buffett Losses Faith in Moody's (MCO), Sells 8 Million Shares Over the Past 3 Days
In a filing after the close on Moody's (NYSE: MCO), the company's largest shareholder, Warren Buffett, disclosed his companies lowered their stake in the credit rating service by about 8 million shares over the past three sessions.
The filing showed Mr. Buffett's NICO sold 1,817,000 shares on 7/20 for $28.73/sh, 3,915,100 shares on 7/21 for $26.92/sh, and 2,254,200 shares on 7/22 for $26.64/sh.
Following the sales, Buffett now owns 40,013,700 shares of Moody's, which is down the 48 million shares he held at 3/31/09. His percentage has been reduced from 20.36% to 16.98%.
Yesterday, the Obama administration delivered to Capital Hill their proposed proposed legislation to increase transparency, tighten oversight, and reduce reliance on credit rating agencies. The legislation would also work to reduce conflicts of interest at credit rating agencies while strengthening the SEC's authority over and supervision of rating agencies.
In May, hedge fund heavyweight David Einhorn said he was short Moody's saying the market is no longer giving the company's ratings any credit. Buffett's sales bolsters his case.
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