Warren Buffett Puzzled by S&P?s Debt Downgrade

Super-investor and chairman of Berkshire Hathaway Warren Buffett is puzzled by Standard and Poor’s decision to downgrade U.S. government debt.

“[It] doesn't make sense," he told Fox News on Friday night. I don't get it. In Omaha [Nebraska], the U.S. is still triple A. In fact, if there were a quadruple-A rating, I'd give the U.S. that."

Buffet added that the US did not warrant such a downgrade and he took a personal swipe at S&P.
“Remember, this is the same group that downgraded Berkshire," he sneered.

Buffett also pointed out that his company’s exposure to US Treasuries is quite significant.

"We just filed our 10Q and we have $47 billion in cash and cash equivalents. Well over $40 billion of it is in short end T-bills,” the said.
“[The downgrade by S&P] doesn't tempt me to sell. We'll stay right there."

Buffett seems to think the downgrade would not have any long-term negative impact on US stock markets.

"If nothing else takes place, meaning, if all other variables hold and there isn't say, a new problem in Europe, it won't make any difference," he stated.

"Think about it. The U.S., to my knowledge owes no money in currency other than the U.S. dollar, which it can print at will. Now if you're talking about inflation, that's a different question."