Billionaires Dumping Stocks

Discussion in 'Wall St. News' started by Lucrum, Mar 1, 2013.

  1. Lucrum


    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.

    Fellow billionaire John Paulson, who made a fortune betting on the 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?

    After all, the stock market is still in the midst of its historic rally. Real estate prices have finally leveled off, and for the first time in five years are actually rising in many locations. And the unemployment rate seems to have stabilized.

    It’s very likely that these professional investors are aware of specific research that points toward a massive market correction, as much as 90%.
  2. it's the Obama effect...
  3. pspr


    Druckenmiller is issuing an economic storm warning saying it could be bigger than 2008-2010. I can't tell what time frame he is talking about, though.

    Noted hedge fund manager Stan Druckenmiller, 59, on Friday warned that the U.S. economy is headed for a “storm” that could prove to be far worse than the financial meltdown of 2008.

    But first, if you’re not familiar with his name, here’s what you need to know: He’s one of the most respected and successful hedge fund managers in the past 30 years.

    Obviously, you don’t achieve that type of success (or notoriety) on Wall Street by running your mouth. That being said, if Druckenmiller, a former partner of billionaire liberal philanthropist George Soros, is predicting serious economic trouble for the U.S., perhaps we should listen.

    “I see a storm coming, maybe bigger than the storm we had in 2008, 2010. And really, the reason could happen without people looking as for a lot of similar reasons that we could get into,” he said during an interview with Bloomberg TV’s Stephanie Ruhle.

    “But the basic the basic story is, the demographic bubble I was looking at way back in ’94 that started in 2011, we are right at the first ramp-up of this thing that is about to hit,” he added.

    His comments were made during a larger discussion on the dangers Social Security, Medicare Medicaid, and unfunded liabilities as high as $211 trillion, pose to future generations.

    “I think people like me and others need to speak out. It’s about the future, not about the present where the problem is,” he said.

    “While everybody is focusing on the here and now, there’s a much, much bigger storm that’s about to hit,” he added. “I am not against seniors. What I am against is current seniors stealing from future seniors.”

    Watch the Bloomberg TV interview here.

    However, if it’s any consolation, Druckenmiller isn’t totally without hope. Indeed, he actually thinks the U.S. has a chance of turning this ship around.

    “With the proper education and with proper voices out there, we could have 40 million kids marching down to Washington,” he said.
  6. Humpy


    Hey great the admin has made $89 billion of cuts.

    Woooo Hoooo only $16.5 trillion to go !!

    Is this Obama-geddon or what ?
  7. WTF is that post. Never post something like that again. You must look at some pretty fucked up shit. Don't click that link.
  8. .86 adjustment is more plauseable.......
  9. Humpy


    Is there somewhere which shows what equities etc. these billionaires currently own ?
    Might be worth tracking a bit.
    #10     Mar 7, 2013