Today will be a painful one for already-suffering Moody’s (MCO) shareholders, as Berkshire Hathaway (BRK) disclosed that it had cut its stake in the ratings agency by some 6 million shares. Buffett now owns about 17% of the company, down from just over 20%.
The stock fall 10% after hours last night, after the news was announced.
Buffett’s stake in Moody’s has always been controversial, since the company has to rate Berkshire Hathaway — though they were just as behind the curve as anyone else in downgrading Berkshire earlier this year. With the ratings agencies set to be knee-capped, it’s not surprising that Buffett would choose to throw in the towel on this one.
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