Jump to content

valueorama

Member
 View Profile  See their activity

  • Posts

    165

  • Joined

  • Last visited

 Content Type 

Posts posted by valueorama

    Buffett’s Moody’s Stake May Have Fallen 300m on S&P Lawsuit

    in Berkshire Hathaway

    Posted

    Lots of things need to be changed before you can say intrinsic value is damaged.

     

    One big thing is that most pension funds and insurance companies are told to hold investment grade securities. Who decides investment grade, Moodys and S&P. It is going to be difficult to tell pension funds/insurance cos to invest in whatever security without creating doubt in retiree's mind.

     

    Plus there are so many mutual funds and others which restrict themselves to AAA or AA or A floors for investments. Even money market funds are restricted.

     

    It will be very hard to change. If they do change, you need to create alternative universe where all the above mentioned funds can transfer smoothly without having a panic/run-in.

     

     

×
×
  • Create New...