Morningstar has announced the launch of its corporate credit ratings initiative which will initially cover 100 companies with plans for expansion to 1,000 companies as additional credit analysts are hired in the coming months. As we have discussed in recent months, the economic moats of the established credit rating firms such as Moody’s and Standard & Poor’s has continued to shrink in light of multiple high profile ratings failures during the financial crisis. Read this article for more details.
Morningstar recently interviewed T2 Partners Founder Whitney Tilson regarding his views on Berkshire Hathaway’s intrinsic value. Mr. Tilson has increased his estimate of Berkshire’s intrinsic value from $110,000 to the mid $130,000 range due to a recovery in the market value of Berkshire’s investment holdings. Read this article for more details on the interview.