Warren Buffett shrugged off Fitch’s U.S. credit standing downgrade, noting it would not change what his conglomerate, Berkshire Hathaway, is doing in the mean time.
“Berkshire purchased $10 billion in U.S. Treasurys final Monday. We purchased $10 billion in Treasurys this Monday. And the one query for subsequent Monday is whether or not we are going to purchase $10 billion in 3-month or 6-month” T-bills, Buffett informed CNBC’s Becky Fast on Thursday.
“There are some issues individuals should not fear about,” he stated. “That is one.”
Warren Buffett excursions the ground forward of the Berkshire Hathaway Annual Shareholder’s Assembly in Omaha, NE.
David A. Grogan | CNBC
On Tuesday, Fitch lowered its long-term international foreign money issuer default score for the U.S. to AA+ from AAA. The scores agency cited “anticipated fiscal deterioration over the following three years,” rising debt and an erosion of governance.
The downgrade sparked a sell-off in U.S. shares. The S&P 500 fell 1.4% on Wednesday.
Buffett famous these considerations are legitimate, and the Oracle of Omaha stated he would not agree with every part the federal authorities is doing. That stated, it is not sufficient to alter his views on U.S. Treasurys and the greenback.
“The greenback is the reserve foreign money of the world, and everyone is aware of it,” Buffett stated.
