Billionaires Dumping Stocks, 
Economist Knows Why

Wednesday, 06 Feb 2013 01:59 PM
By Newsmax Wires
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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?
 
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Billionaires Dumping Stocks, Economist Knows Why


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