On Berkshire: Loses AAA, Buffett Salary & No AIG (BRK-A, AIG)

There has been quite a lot of news on Berkshire Hathaway Inc. (NYSE: BRK-A) and Warren Buffett in the last 12 hours.  Bond and credit ratings agency Fitch downgraded the conglomerate.  Buffett also outlined how he refused to invest in or rescue American International Group Inc. (NYSE: AIG).

Fitch downgraded Berkshire Hathaway, Inc. (NYSE: BRK-A) Issue Default Rating to ‘AA+’ from the top AAA; and senior unsecured debt ratings to “AA” from “AAA.”  Fitch did reaffirm Berkshire’s Insurer Financial Strength at “AAA” at its insurance units and subsidiaries. The rating outlook for all entities is now “Negative” as the ratings agency cited concerns over the loss potential on insurance equity and derivatives.

It also looks like the Oracle of Omaha took a $100,000 salary.  When you come in at #2 in the world’s billionaires list on Forbes, who needs a salary?

Buffett also told Bloomberg in another interview that he also was given the opportunity twice to invest in (rescue) American International Group Inc. (NYSE: AIG) but he refused.  He merely noted that the insurer needed more than what he could provide.

On top of Buffett defending and explaining many of his positions early this week in a long CNBC interview, it has been a pretty active week at the insurance giant and conglomerate.

Jon C. Ogg