4 votes

Billionaires dumping stocks like they're going out of style (including bank stocks).

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.

Continue reading at: http://www.moneynews.com/Outbrain/billionaires-dump-economis...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

It's just one of many economic indicators.

We would be foolish to live and die by what Buffet does. But when so much big money moves in similar fashion, it's definitely worth noting.

Velveeta: No no.. It's nothing to worry about

Pay no attention to the men behind the curtain. All is well.. this is not the economic crash you are looking for. Move along.

Patriot Cell #345,168
I don't respond to emails or pm's.
http://www.youtube.com/watch?NR=1&feature=endscreen&v=qo8CmO...
Those who make peaceful revolution impossible will make violent revolution, inevitable.

Why Are They Dumping Stocks ?

Possible answer:
Because with an Obama Presidency, and Israeli takeover of the USA, private ownership of anything might be a thing of the past.

beesting

Your input is appreciated,

I must have lost your contact info-email address may have changed??

Thank You.

I've dropped out of society.

Here is something you might enjoy and pass on:

http://www.youtube.com/watch?feature=player_embedded&v=94rcO...

beesting

You are always welcome

to drop in to visit! I don't get to that side of the mountains much anymore now that my daughter is here. You have her contact info I think.

Don't Forget Eric Schmidt of Google

He dumped a bunch of Google stock as well.

Executives typically have

Executives typically have prescheduled periods when they exercise stock options.

ecorob's picture

And I now understand that they collude...

to do it all at the same time!

Nothing to see here, move along.

its 'cos I owe ya, my young friend...
Rockin' the FREE world in Tennessee since 1957!
9/11 Truth.

I know for a fact that

I know for a fact that executives collude all the time, just as nearly anyone who is well connected does. Because someone else is "rich" is not a sign that you or I are insignificant in comparison. Wealth is a result of a person who understands and plays the game well, that's all.

ecorob's picture

You know...

you have been WRONG on everything you comment on. Look it up.

You are wrong again. Nothing to see here, move along. Billionaires dumping stocks means nothing...velveeta cheeseidiot has spoken.

its 'cos I owe ya, my young friend...
Rockin' the FREE world in Tennessee since 1957!
9/11 Truth.

True but...

The point is he exercised that option and dumped a bunch of his stock. He didn't buy a bunch. That's all.

Don't forget

Michael Dell's recent dump!

Dell had to take his company

Dell had to take his company private because they completely missed the consumer shift toward the iPad, which is decimating commodity PC sales (and for good reason). Supposedly Dell will focus on the enterprise computing and services market. I think if they hadn't done this, they'd be out of business in a year.

Perhaps, but

he sure was waffling at the end and trying to sweeten the deal and cover his arse.

He's a businessman. It's all

He's a businessman. It's all about creating value, even when value flees your business model.

I can only assume I get a down vote or two because the critics have no business experience?

Word.

.

The markets will have to correct/normalize eventually.

We shall see how things play out and when.

The markets are as normalized

The markets are as normalized as they can be. A market involves buyers and sellers. People make money whether markets are up or down.

Would you mind backing up your claims?

I'm open to opposing evidence but baseless opinions are not useful.

Sorry, what?

"There are two sides to every trade."

Google that exact phrase (including the quotation marks).

actually there is not. You

actually there is not. You have not researched high frequency trading where a computer can rig markets.

I'm quite aware of the

I'm quite aware of the effects high-freq programs have on the markets, however they tend to trade in-between the trades. What do I mean by this? These programs, using a form of artificial intelligence, will engage in massive numbers of trades for fractions of a second to profit from tiny fluctuations that would be impossible for normal humans to carry out. Even if it is being done by a computer, a trade depends on a buyer and a seller.

Unlike some, I believe the existence of these programs is essential for growing markets. The point is to make money and companies using these clever schemes are using their wealth and some ingenious programming to do exactly that.

Do you believe in making money? Do you believe that if you are faster, smarter and more focused on a goal you should be rewarded for your efforts (or conversely, be punished for making bad decisions)? I do.

And your point is..........?

Market normalization/correction is essentially a bust that brings us back to reality after we overspend due to speculation.

A way to look at it is to parallel it with our forests. For hundreds of years we swept in put out any fires that sprung up. This allowed the forests to overgrow to the point that when a fire started, we were no longer able to put it out. Instead of regular burning of the forest floor which is normal, we created super fires by not allowing the forest to naturally maintain itself.

We have done this same thing economically by artificially stamping out any bust cycle through Federal Reserve intervention. The small bust cycles were economic checks and balances which kept our economy as a whole from getting out of control. With those checks and balances gone, we are in for a big reset unless "Deus ex machina" somehow makes a jump from the theatrical stage to the real world.

So again, would you please back up your position with something more concrete than a simple unexplained opinion? Or are you truly a government troll?

You said

"Market normalization/correction is essentially a bust that brings us back to reality after we overspend due to speculation."

Are you talking about public (government) spending? You seem to be. The market I know is the stock market and it's also the subject of this thread.

"The market" is made of the combined self-interested daily trades of millions of people and automated trades made by computer trading programs, sometimes millions per second. A "normal" market is one in which there are buyers and sellers. Don't fixate on the "volume of trades" or the "level of the Dow" these things are largely window dressing for headlines. Suckers follow the market at large and "hot stocks", investors follow their own stocks and are aware of long-term trends that may ultimately affect their investments.

Thanks for the more detailed response.

When I say "market" I am not simply limiting it to the stock market or I would have stated it as such. Perhaps a better word to use would have been simply the "economy."

The actual subject of this thread, although I may not have been very clear, was pointing out yet another economic indicator that would suggest that we are on the verge of seeing another asset bubble burst. Which market will set it off? I'm not smart enough to know for sure, but the signs are there.

The stock market will most likely be directly influenced by the next bubble bursting just like it was in 2008 when the housing market crashed. Will people make money off their puts? Sure they will. But that wasn't the point I was trying to make when I posted the article.

Interest rates will go up sometime.

Than it's kaput. Bond bubble burst, sovereign defaults, derivative bubble unraveling, faith in fiat lost.

If one could time the bursting of the bond bubble and short long bonds they would be very fortunate. It will happen. But when?!?!?