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Berkshire Hathaway-Treasuries Equivalence Proves Brief

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Warren Buffett bonds are no longer deemed as safe as a T-bills by the sages at Standard & Poor's.

Warren Buffett's Berkshire Hathaway Inc. had its credit rating cut one notch to double-A by Standard & Poor's, which cited the conglomerate's reliance on its insurance operations….

The ratings company said the move was fueled by Berkshire's "dependence on its core insurance operations for most of its dividend income." The Berkshire-owned railroad Burlington Northern is the only noninsurance subsidiary to provide a "significant portion of the total dividends paid from the operating companies to the holding company," S&P said.

S&P Cuts Rating on Berkshire Hathaway [WSJ]



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