Instead of taking the vocal approach to chastising this agency, whose improper debt ratings served as a major driver leading up to the global financial crisis, Buffett has expressed his disapproval through the habitual sale of his MCO shares throughout 2009 and the first part of this year. It will be interesting to see if the investor continues to dump shares in this manner until he has rid himself of the company completely.
Posco Gets the Kraft Treatment
Buffett spoke out against South Korean steelmaker Posco's (PKX) plan to acquire shipbuilder Daewoo Shipbuilding & Marine Engineering. In an interview, Posco explained that shareholders, including Berkshire Hathaway, have urged the steelmaker to conduct a thorough review of the bid before proceeding.
Buffett expressed similar concerns at the end of 2009 when he expressed his disapproval toward Kraft's (KFT) decision to buy U.K. candy-maker Cadbury. The Oracle's concerns stemmed from the belief that the proposed deal required that Kraft issue an excessive number of shares to fund the bid.
Warren watchers and Posco investors will want to keep an eye on how this deal progresses. Buffett and other prominent shareholders are worried that Posco's plan to buy the shipbuilder may be coming at a time when the shipbuilding industry is in the midst of a prolonged downturn.Did Buffett's actions this week affect any of your investment decisions? Feel free to leave a comment below. -- Written by Don Dion in Williamstown, Mass.
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