[quote=murchr]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.
http://www.moneynews.com...E=1393F-1#ixzz2VtRkwaXJ[/quote]
I hope I am wrong but this is just alarmist! The article talks about how the 3 are selling "their stocks" but it doesn't say what percentage of their portfolio these stocks hold, and it doesn't say what they are doing with their funds, kinda hard to believe that they would put their money under the mattress. Its a known fact that Buffett only invests in US stocks, so if this article was to be believed, where is he then putting his funds? Then I know for a fact Paulson just bought a big chunk of FNMA and FMCC preferred shares. They may have sold their consumer stocks but it doesn't mean they sold off all their stocks.