Aug 8, 2011

Warren Buffett against downgrading USA Rating and Positive on USA Economy

After landing into controversy on going agains Kraft for buying Cadbury, and his response and comment on one of his top executive David Sokol doing insider trading on his buy-out target Lubrizol; the Oracle of Omaha and 'investment saint' as we also many times refer him in our talk, Warren Buffett has only spurred criticism from intellectuals of many parts of world. 
Warren Buffett commenting on the last week's downgrade of USA from AAA rating to AA+ by S&P, said that the rating agancy has erred and the USA deserves the AAA rating still and he would give quadruple A rating if there existed. He also commented that the USA economy is not going down and there is no double dip recession.
Mr.Buffett's comment has spurred many attacks from media-blogging community mainly and anti-USA intellectuals. People wrote Mr.Buffett has vested interest of piles of US treasuries, and USDollar cash pile apart from most of the holding of USA corporations. The critics also doubted Mr.Buffett's comments had to do with his stake in rival rating company Moody's.
Whatever it may be, but Mr.Buffett, beginning with his Phillip Conoco bet to late last David Sokol fiasco, had dimmed the halo from over the head of the Omaha Oracle, if not completely removed. The damage to his holy-grail personality can result in damage in more precious ethics of value investing that he has pioneered.  
Below is a news report by Fox on same,


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