Billionaires Dumping Stocks, Economist Knows Why

GURPS

GURPS

INGSOC
PREMO Member
billionaires dumping stocks, economist knows why


despite the 6.5% stock market rally over the last three months, a handful of billionaires are quietly dumping their american stocks . . . And fast.

Warren buffett, who has been a cheerleader for u.s. Stocks for quite some time, is dumping shares at an alarming rate. He recently complained of “disappointing performance” in dyed-in-the-wool american companies like johnson & johnson, procter & gamble, and kraft foods.

In the latest filing for buffett’s holding company berkshire hathaway, buffett has been drastically reducing his exposure to stocks that depend on consumer purchasing habits. Berkshire sold roughly 19 million shares of johnson & johnson, and reduced his overall stake in “consumer product stocks” by 21%. Berkshire hathaway also sold its entire stake in california-based computer parts supplier intel.

With 70% of the u.s. Economy dependent on consumer spending, buffett’s apparent lack of faith in these companies’ future prospects is worrisome.

Unfortunately buffett isn’t alone.
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tommyjo

New Member
In the latest filing for buffett’s holding company berkshire hathaway, buffett has been drastically reducing his exposure to stocks that depend on consumer purchasing habits. Berkshire sold roughly 19 million shares of johnson & johnson, and reduced his overall stake in “consumer product stocks” by 21%. Berkshire hathaway also sold its entire stake in california-based computer parts supplier intel.
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Do you really believe this stuff you post?

"Recently", huh?

Berkshire Hathaway reduced its position in J&J in early 2012. He reduced his stake in Kraft and P&G at the same time.

Buffett's Berkshire cuts stakes in J&J, Kraft, P&G - MarketWatch

Berkshire Hathaway still owns $30 million in Kraft and Mondelez (spun off from Kraft last yr) stock; $30 million in J&J; and $4 billion of Procter and Gamble. For a full list of Berkshire holdings (thru Sept 30) see:

Berkshire Hathaway Portfolio Tracker

Berkshire Hathaway sold it stake in Intel (also in 2012...hardly recent) less than 1 year after its purchase and after making a 25% gain.

Berkshire Posts 25% Intel Gain by Shunning Buy-and-Hold - Bloomberg

Interesting that you reference article doesn't mention Berkshire's purchases....Exxon, a Phillips 66 unit, Heinz or all the other consumer related entities that Berkshire owns.

Oh BTW...Robert Wiedemer has a degree in marketing. He is not an "esteemed economist" as your article states. His BROTHER, David, has a degree in economics.

Aftershock: Finding fortune in marketing doom - The Term Sheet: Fortune's deals blogTerm Sheet

As usual, your sources suck.
 
LibertyBeacon

LibertyBeacon

Unto dust we shall return
I'm with tommyjo on this one dude. Newsmax is a terrible source. Here's virtually the same article from September 26th, 2012 hosted at another URL.

We Are Moving Toward A Massive Market Correction, As Much As 90%! | InvestmentWatch

The come-on line is precisely the same:

Despite the 6.5% stock market rally over the last three months, a handful of billionaires are quietly dumping their American stocks . . . and fast.
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GURPS, you gotta vet this stuff more. Took me less than 30 seconds.

That said, I am still bullish. QE is helpful, but fundamentals by and large support these price levels (with some upside potential), at least in industry sectors I follow. Haven't changed my allocations and don't think I'll have to for a while.

:buddies:
 
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czygvtwkr

Guest
Not to mention that stocks like Kraft, Johnson and Johnson, and Procter and Gamble are hedge stocks. They are never going to set the world on fire. You buy these stocks for a steady dividend and/or to hedge your bets in a bad economy because people will always be buying food, toothpaste, bandaids etc.
 
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