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. (more)
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