Billionaires dumping US stocks, should I?

Bubba1235 · Feb 9, 2013

Warren Buffett, Bill Gates, John Paulson, George Soros are all dumping their US stocks and any stocks that rely on American consumers. Makes a guy wonder if he should be doing the same???

Noted author Robert Wiedemer (America's Bubble Economy) has released a new book called Aftershock and it's got those in the know paying very close attention to his predictions of where (American) stocks are headed. His track record on predicting future economic trends has been spot on and it's getting a lot of attention, at least enough it makes me pay attention.

To other's that own US stocks, do you have any plans to get rid of them?

Stachi · Feb 9, 2013

Re: Billionaires dumping US stocks, should I?

It is certainly a sign of an uncertain world...is it any wonder that job creation is at a stall ?

southkogs · Feb 9, 2013

Re: Billionaires dumping US stocks, should I?

All the king's horses and all the king's don't know what to do either. I read Aftershock and it's rather compelling. I've stayed out of single stocks, but kept my mutual funds going.

JB · Feb 9, 2013

Re: Billionaires dumping US stocks, should I?

The sky is not falling, Bubba. US stock markets are near an all-time high. I am not selling anything.

tpenfield · Feb 9, 2013

Re: Billionaires dumping US stocks, should I?

Bubba1235 said:
Warren Buffett, Bill Gates, John Paulson, George Soros are all dumping their US stocks and any stocks that rely on American consumers. Makes a guy wonder if he should be doing the same???

Noted author Robert Wiedemer (America's Bubble Economy) has released a new book called Aftershock and it's got those in the know paying very close attention to his predictions of where (American) stocks are headed. His track record on predicting future economic trends has been spot on and it's getting a lot of attention, at least enough it makes me pay attention.

To other's that own US stocks, do you have any plans to get rid of them?

I think Robert Wiedemer has his own personal 'stock thing' going with writing books . . .

dwco5051 · Feb 9, 2013

Re: Billionaires dumping US stocks, should I?

Where else is extra cash going to work for you right now right now?

I sold a large percentage of my stocks in early 2008 and converted to treasuries as I was starting to build a new house and needed the cash. Got lucky there because that was before the market drop. Staggered 90 day treasuries gave me the cash to buy materials and pay contractors and got lucky again because they were gone before the interest on T-bills dropped.

However I am putting small amounts on a monthly basis in ever since then and it has faired well for me. Primarily in utilities, food manufacturers, and household products. CD’s paying less than 2%, Govt securities even less, there aren’t too many options available.

I follow commodities as a hobby but that is not a good option for the small investor. It does give me a chance to add my 2 cents when talking with my farmer friends.

fishrdan · Feb 9, 2013

Re: Billionaires dumping US stocks, should I?

Bubba1235 said:
Well yeah, that's a gvien isn't it? Doesn't change his track record though.

What's his track record, that he predicted the 2008 crumbling economy back in 2006? I'm not sure I put too much faith in someone that predicted one thing. I watched part of his video about the impending doom in 2013, I stopped watching me when they started pushing their book and financial services. I don't think we are out of the woods, but I don't think it's going to be doom and gloom with the stock market crashing and 50% unemployment....

fishrdan · Feb 9, 2013

Re: Billionaires dumping US stocks, should I?

Bubba1235 said:
Actually he was pretty much spot on with the housing bubble, then the banks and then wall street. If you're asking if he is right now, who knows, I sure don't. Wish like heck that I did!

I'm just leery of his doom and gloom 2013 predictions, especially since the markets have been trending upwards instead of plummeting as they did right after the elections. That said, I'm being conservative...

(Mailbox all cleared out now

)

aspeck · Feb 9, 2013

Re: Billionaires dumping US stocks, should I?

Bubba1235 said:
.... and I'm thinking more diversity may be in order.

Now there is a wise statement. Fully invested with a diverse portfolio, utilities, consumables, international, national ... I feel pretty comfortable with my holdings right now ...

bassman284 · Feb 9, 2013

Re: Billionaires dumping US stocks, should I?

fishrdan said:
What's his track record, that he predicted the 2008 crumbling economy back in 2006? I'm not sure I put too much faith in someone that predicted one thing. I watched part of his video about the impending doom in 2013, I stopped watching me when they started pushing their book and financial services. I don't think we are out of the woods, but I don't think it's going to be doom and gloom with the stock market crashing and 50% unemployment....

I predicted the 2008 crumble in 1996. I just didn't know when it was going to happen. At first I thought the 2000-2001 crash was it but it turned out to be something else. Prediction is tricky business.

In my experience, billionaires aren't necessarily real smart, they just have a lot of money. Even Warren Buffet has hit a few clunkers. I'm also pretty sure that billionaires have different investment goals than I do. I don't try to think what they're thinking.

When things started to come apart in 2008, I moved everything in my 401k into the Money Market fund. Good plan, as it turned out. Or would have been if I had left it there. Unfortunately, I got edgy in about March of 2009 when the market seemed to be coming back. Fortunately, I only moved half my money back into the market. Then, of course, it crashed and burned. I rode it to the bottom and lost about 40%. But a year later, most of that was back.

Right now, I'm about half and half stocks and bonds. I hate the bonds because they don't make any money but if the stocks crash, the bonds should survive. I guess. What do I know?

angus63 · Feb 9, 2013

Re: Billionaires dumping US stocks, should I?

Buffet advises holding during sell offs, just not his stuff.

fishrdan · Feb 9, 2013

Re: Billionaires dumping US stocks, should I?

bassman284 said:
When things started to come apart in 2008, I moved everything in my 401k into the Money Market fund.

I've done the same thing with my 401K and I'm either all-in with stocks or all-out with bonds now. I'm not sure it's the best strategy, but it's worked better than shoveling money into a 401K and forgetting about it, as I did for the first 15 years. I use Market Browser to see how the markets are performing throughout the day, it's come in handy.

southkogs · Feb 9, 2013

Re: Billionaires dumping US stocks, should I?

fishrdan said:
I'm just leery of his doom and gloom 2013 predictions, especially since the markets have been trending upwards instead of plummeting as they did right after the elections...

I'm a little leery of them too. Though, like I said I find many of his arguments compelling. Peter Schiff is another who I think makes some good arguments. But everything with a grain of salt.

My concern isn't actually the market itself (though I think it's been overvalued some), but rather outside influences on it. Too much tryin' to control money and the economy going on (IMHO).

rockeater · Feb 9, 2013

Re: Billionaires dumping US stocks, should I?

Hi everyone,
Finance is somewhat of a hobby and a passion for me (20 years). I love the stock market and find it challenging to pick the winners. Now we all know that this doesn't always happen, but if you don't play you will never win. Hokey I know, but true. The stock market has its ups and downs, but overall it generally returns more that it takes. With that in mind, individual investors must be patient and buy in for the long term. I am not saying that you buy and hold until a stock is dead, but you have to be patient. Put stop limits in place to protect your gains, a simple and effective strategy. I know I am babbling, but what I am trying to say is be patient and don't always follow the doom and gloom. Follow a strategy instead.

Rock

Tail_Gunner · Feb 9, 2013

Re: Billionaires dumping US stocks, should I?

Dont be surprised the Buffet is into insurance and and big oil....who need's a a bunch of low yeild investment's when you have this...Buffett buying Burlington Northern railroad - Business - US business | NBC News

And then this Bakken Crude: Buffett's Railroad Beats ONEOK's Pipeline - Seeking Alpha

September, Burlington Northern announced it had increased its capacity to haul Bakken crude to 1 million barrels/day. That's saying something considering total North Dakota oil production in August amounted to just over 700,000 barrels/day. BNSF has announced that it would spend $1.1 billion on locomotives, freight cars and related equipment to boost its crude-shipping capability from the Bakken. The company is developing over 35 facilities for unloading crude oil from trains in several states

That equates to 1 million dollar's per train profit not cash flow Burlington charges $10.00 per barrel...Now that's ROI...

Hmmm ever wondered why the pipe line was shot down in flame's...Now you know the rest of the story...:laugh:

Ohh by the way does anyone think the analyst's would build to this capactiy is it wasnt there:

September, Burlington Northern announced it had increased its capacity to haul Bakken crude to 1 million barrels/day. That's saying something.

Burlington Northern Santa Fe Corporation (BNI) Earnings - Analyst Estimates - TheStreet

JB · Feb 9, 2013

Re: Billionaires dumping US stocks, should I?

Diversity is certainly in order at any time. I made more with my raw land investments over 20 years than I lost in the market in '07.

dwco5051 · Feb 9, 2013

Re: Billionaires dumping US stocks, should I?

southkogs said:
My concern isn't actually the market itself (though I think it's been overvalued some), but rather outside influences on it. (IMHO).

Agree somewhat over valued but when you have the only game in town you can raise your ticket prices.

bassman284 · Feb 9, 2013

Re: Billionaires dumping US stocks, should I?

Tail_Gunner said:
Dont be surprised the Buffet is into insurance and and big oil....who need's a a bunch of low yeild investment's when you have this...Buffett buying Burlington Northern railroad - Business - US business | NBC News

And then this Bakken Crude: Buffett's Railroad Beats ONEOK's Pipeline - Seeking Alpha

September, Burlington Northern announced it had increased its capacity to haul Bakken crude to 1 million barrels/day. That's saying something considering total North Dakota oil production in August amounted to just over 700,000 barrels/day. BNSF has announced that it would spend $1.1 billion on locomotives, freight cars and related equipment to boost its crude-shipping capability from the Bakken. The company is developing over 35 facilities for unloading crude oil from trains in several states

That equates to 1 million dollar's per train profit not cash flow Burlington charges $10.00 per barrel...Now that's ROI...

Hmmm ever wondered why the pipe line was shot down in flame's...Now you know the rest of the story...:laugh:

Ohh by the way does anyone think the analyst's would build to this capactiy is it wasnt there:

September, Burlington Northern announced it had increased its capacity to haul Bakken crude to 1 million barrels/day. That's saying something.

Burlington Northern Santa Fe Corporation (BNI) Earnings - Analyst Estimates - TheStreet

Good illustration of why normal folks shouldn't pay to much attention to what billionaires do. We don't operate on their level. Best day of my life I can toss maybe $200k into a mutual fund I think looks good (yeah, I'm poor). Warren Buffet tosses $1.1 billion to spruce up a nice investment he already holds. A lot of very nice companies can be bought for $1.1 billion if you're able to pick and choose and stock index levels may not have a whole lot of influence on your choice. A billionaire might suddenly decide to dump a few hundred million in stocks for no other reason than to free up the cash for something that entertains him.

rbh · Feb 10, 2013

Re: Billionaires dumping US stocks, should I?

Bubba1235 said:
I tend to agree with you on that JB, at least I do when the land is close enough for me to keep an eye on it. My farm land did well (I sold the land in Iowa and bought more closer to home.) You know what they say, "They aren't making any more land".

+1 on the land purchasing!!!

I knew of three areas were the land had devalued over the years do to no to low employment in the area, then read of the opening of old mine sites in the areas.
Over the course of 6 months, the propertys tripled in value.

Boom, bust, boom economics.

Since the price of oil and gas is much higher oversea (Asia) the new pipe lines feeding the tankers and CNG plants on the west coast could be raking in the dough soon.

rbh · Feb 10, 2013

Re: Billionaires dumping US stocks, should I?

Whats CRP?

Billionaires dumping US stocks, should I?

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