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IBDvalueinvestin (98.29)

Someone is Lieing? How can Billionaires be selling



March 02, 2013 – Comments (9) | RELATED TICKERS: BRK-B , SQQQ , TQQQ

and clearing out of stocks? If this was true then the market would have been tanking in Feb. 2013, which was not the case. In fact the market added to the gains of Jan 2013 during Feb.


Billionaires Dumping Stocks, Economist Knows Why

Wednesday, 06 Feb 2013 01:59 PM

By Newsmax Wires


Despite the 6.5% by Coupon Companion Plugin">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 by Coupon Companion Plugin">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.

Fellow billionaire John Paulson, who made a fortune betting on the by Coupon Companion Plugin">subprime mortgage meltdown, is clearing out of U.S. stocks too. During the second quarter of the year, Paulson’s hedge fund, Paulson & Co., dumped 14 million shares of JPMorgan Chase. The fund also dumped its entire position in discount retailer Family Dollar and consumer-goods maker Sara Lee.

Finally, billionaire George Soros recently sold nearly all of his bank stocks, including shares of JPMorgan Chase, Citigroup, and Goldman Sachs. Between the three banks, Soros sold more than a million shares.

So why are these billionaires dumping their shares of U.S. companies?

Read more of this article from

9 Comments – Post Your Own

#1) On March 02, 2013 at 6:06 PM, IBDvalueinvestin (98.29) wrote:

The author of the book "Aftershock" says that when interest rates rise to 10% 10yr treasury will lose half their value and all their value at 20% interest rate.

Bond Bubble crash will also cause a Stock market crash?

I thought that if bonds crash, investors will sell bonds and buy stocks instead? That is if they don't lose most of their bond money before they do it.


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#2) On March 02, 2013 at 8:57 PM, ryanalexanderson (< 20) wrote:

If bonds crash, leveraged companies can't borrow. They can't fund capex. Investors sit in cash, or buy stuff abroad. If interest rates hit 10%, I'd say losing half their value would be optimistic. And, of course, the American government would be so screwed at >100% debt/GDP.

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#3) On March 02, 2013 at 9:22 PM, HarryCaraysGhost (68.06) wrote:

Couldn't Berkshires recent aquisition of Heinz have something to do with his selling? 

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#4) On March 02, 2013 at 9:37 PM, awallejr (28.16) wrote:

Where did 10% interest rates enter the picture?  Didn't you even listen to Bernanke?

Buffett has basically acknowledged that the S&P will out perform him.  Paulson also lost a lot after his sub prime hit.  And Soros is right in dumping big bank stocks since Dodd-Frank will hurt their earnings.

Baby boomers aren't selling their bonds.  Now their estate's eventually will.

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#5) On March 03, 2013 at 5:28 AM, TMFAleph1 (92.14) wrote:

Newsmax is not a credible source for commentary on the stock market, or on any other topic, for that matter.

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#6) On March 04, 2013 at 12:40 PM, ETFsRule (< 20) wrote:

This was written right before Buffett bought Heinz. And the article only says "a handful" of billionaires are selling. I'm sure "a handful" billionaires are also buying. So take it with a grain of salt.

And, Buffett might not be done buying: link

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#7) On March 05, 2013 at 1:06 AM, GabbyL (< 20) wrote:

This same 'article' has been making the rounds for at least 6 months.

Google the sentence "Despite the 6.5% stock market rally over the last three months, a handful of billionaires are quietly dumping their American stocks . . . and fast."

and you can see for yourself. 

Here's one from August 2012


 Does Wiedemer have a new book coming out or something? Isn't there a second edition to promote?


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#8) On March 06, 2013 at 9:01 PM, IBDvalueinvestin (98.29) wrote:

All good responses to my blog post. I enjoyed reading all your comments and insights.

Thanks for posting its greatly appreciated.


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#9) On March 07, 2013 at 2:40 PM, baselineace (44.42) wrote:

Has Newsmax ever posted a credible article?

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