Only the naive and financially ignorant would rely on a credit rating from a company without performing their own due diligence. Yet many people rely on analyst upgrades, downgrades, and ratings, even fund managers that are in charge of billion dollar portfolios. Politics is at the root of most business decisions and it comes to no surprise that US stock market cheerleader Warren Buffett is once again pumping the US Stock market while dismissing reality.
After Warren Buffett’s Berkshire Hathaway cut its investment holdings in Moody’s, the rating agency reduced Berkshire’s rating. Now, just days after Buffet came public with his statement disagreeing with Standard&Poor’s downgrade of US Debt the rating agency released a statement saying Berkshire is under review for further downgrades. If you live the life as the cheerleader of the US Economy and benefit from government interference including the bailouts you might as well put up with the politics that comes with it.