Berkshire Hathaway Inc announced that it had sold off 6.1% of its stake in Moody's Corp. This is the first time after 2010 that the Warren Buffett led firm had sold shares of the parent firm of credit rating agency Moody's Investors Service.
The sale was roughly 1.75 million shares in Moody's between April 29 and May 1 generated proceeds of about US$105 million. It also reduced Berkshire's shareholdings in the company from 12.7% to 11.9%, according to documents filed with the US Securities and Exchange Commission.
All of the shares subject to the sale were owned by Berkshire's Geico auto insurance unit. After the sale, Geico would still own about 14 million shares in Moody's while another Berkshire firm, National Indemnity Co owns nearly 12.7 million.
There was inclination for the reason for the sale. Both Moody's spokesperson and Berkshire spokesperson did not immediately respond to a request for comment.
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