Warren Buffett excursions the ground forward of the Berkshire Hathaway Annual Shareholder’s Assembly in Omaha, NE.
David A. Grogan | CNBC
Warren Buffett shrugged off Fitch’s U.S. credit standing downgrade, noting it does not change what his conglomerate, Berkshire Hathaway, is doing in the meanwhile.
“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’ll purchase $10 billion in 3-month or 6-month” T-bills, Buffett advised CNBC’s Becky Fast on Thursday.
“There are some issues individuals should not fear about,” he mentioned. “That is one.”
On Tuesday, Fitch lowered its long-term overseas forex issuer default ranking 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 mentioned he does not agree with every part the federal authorities is doing. That mentioned, it isn’t sufficient to alter his views on U.S. Treasurys and the greenback.
“The greenback is the reserve forex of the world, and all people is aware of it,” Buffett mentioned.
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