Warren Buffett Sells Moody's (MCO) Shares Again ~ market folly

Friday, December 11, 2009

Warren Buffett Sells Moody's (MCO) Shares Again

In a Form 4 filed with the SEC, legendary investor Warren Buffett and his Berkshire Hathaway disclosed that they have sold more shares of Moody's (MCO). On December 7th they sold 2,004,946 shares at a price of $25.0381 per share. The next day they sold an additional 704,346 shares at a price of $24.8074. In total, they sold 2,709292 shares and they are now left owning 35,357,393 shares. As we mentioned before, Buffett previously sold Moody's shares in late October, and in months prior as well. (Head over to TickerSpy to see Warren Buffett's portfolio).

So while Buffett and Berkshire have been selling shares multiple times over the past few months, keep in mind that they still own a sizable chunk of the company. It's going to be interesting to watch if Buffett continues to sell completely out or if he is merely trimming his position down to avoid possible risks associated with this name. David Einhorn's hedge fund Greenlight Capital has been publicly short Moody's (MCO) and McGraw Hill (MHP) and you can see his short thesis in his presentation on the curse of the Triple-A. It's certainly a situation worth watching.

To learn to invest like one of the greatest ever, check out Warren Buffett's recommended reading list. For words of wisdom, check out our top 25 Warren Buffett quotes. And lastly, for more insight from Mr. Buffett on this economy, investing, and life then check out his recent talk at Columbia Business School with Bill Gates.

Taken from Google Finance, Moody's is "a provider of credit ratings and related research, data and analytical tools, quantitative credit risk measures, risk scoring software, and credit portfolio management solutions and securities pricing software and valuation models. The Company operates in two segments: Moody’s Investors Service (MIS) and Moody’s Analytics (MA)."

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