http://blogs.reuters.com/reuters-dealzone/2009/09/04/did-the-oracle-just-blink/ Behind the deals and deal-makers Thu, 23 May 2013 14:34:58 +0000 hourly 1 http://wordpress.org/?v=3.4.2 http://blogs.reuters.com/reuters-dealzone/2009/09/04/did-the-oracle-just-blink/comment-page-1/#comment-347472 A. D. Constantinidis Mon, 07 Sep 2009 11:41:55 +0000 http://blogs.reuters.com/reuters-dealzone/?p=17011#comment-347472 Perhaps Warren Buffett simply realized the conflict of interest for a rating organization to have its shares listed in the Stock Exchange... Perhaps Warren Buffett simply realized the conflict of interest for a rating organization to have its shares listed in the Stock Exchange…

]]> http://blogs.reuters.com/reuters-dealzone/2009/09/04/did-the-oracle-just-blink/comment-page-1/#comment-347355 Peter J. Middlebrook Fri, 04 Sep 2009 15:29:38 +0000 http://blogs.reuters.com/reuters-dealzone/?p=17011#comment-347355 There is little doubt that ratings agencies failed to provide investors with the level of independent oversight required. One only has to look back at the expansion and contraction of markets since the great depression to realize that valuation must be taken with a pinch of salt. Yet the problem is not easy to fix as markets deal in minutes, newspapers deal in daily news and politicians deal within fiscal years and electoral cycle. Who is thinking about long term values? Who would pay for it if they did? How would the decline of empires be costed into such a framework? Surely Buffet's dumping of less than 2 per cent of his holdings was intended as a professional slight rather than a risk management strategy, We all need change, we all need more sustainable values and we all need ratings agencies that are not in bed with those making deals in the financial industry. Perhaps highly regulated not-for-profit agencies would fill the current void in independent valuation? There is little doubt that ratings agencies failed to provide investors with the level of independent oversight required. One only has to look back at the expansion and contraction of markets since the great depression to realize that valuation must be taken with a pinch of salt. Yet the problem is not easy to fix as markets deal in minutes, newspapers deal in daily news and politicians deal within fiscal years and electoral cycle. Who is thinking about long term values? Who would pay for it if they did? How would the decline of empires be costed into such a framework? Surely Buffet’s dumping of less than 2 per cent of his holdings was intended as a professional slight rather than a risk management strategy, We all need change, we all need more sustainable values and we all need ratings agencies that are not in bed with those making deals in the financial industry. Perhaps highly regulated not-for-profit agencies would fill the current void in independent valuation?

]]> http://blogs.reuters.com/reuters-dealzone/2009/09/04/did-the-oracle-just-blink/comment-page-1/#comment-347351 Mike Middleton Fri, 04 Sep 2009 13:43:00 +0000 http://blogs.reuters.com/reuters-dealzone/?p=17011#comment-347351 Good news, honest ratings would be a wonderful. Good news, honest ratings would be a wonderful.

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