Saturday, July 25, 2009

More Financial Hypocrisy from Warren Buffett

On April 8, 2009, Moody’s downgraded Berkshire Hathaway stock from AAA to AA2. At that time, Berkshire owned more than 20 percent of Moody’s outstanding stock. On July 23, 2009, Berkshire announced that it had sold more than almost 10 million shares of Moody’s. This appears to be a sign of pure retaliation on the part of Warren Buffett, CEO of Berkshire, and the grand ethicist of Wall Street.

As in the past, Mr. Buffett calls for more objective stock evaluations except when it comes to his company. That is, Mr. Buffett has always been one of the most sanctimonious CEOs in the U.S. For example, he fails to even blush when he calls for higher taxes except when it comes to levies that hit his pocketbook. He has advocated the abolition of the dividend and capital gains tax cuts at the same time he rails against the new cap & trade bill which will cost his Mid-American Energy Company millions in taxes.

Ernie Goss

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