Black Money Business Jobs : Time to re-evaluate your Stock Portfolio

Discussion in 'Black Money Business Jobs' started by Asomfwaa, Jan 15, 2013.

  1. Asomfwaa

    Asomfwaa Well-Known Member MEMBER

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    http://www.moneynews.com/MKTNews/bi.../450265?PROMO_CODE=110D8-1&utm_source=taboola

    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%.​

    One such person publishing this research is Robert Wiedemer, an esteemed economist and author of the New York Times best-selling book Aftershock.​


    There's more to read on the site; yet know that the White man's economy is prone to economic collapses. More Warren Buffet is one of the foremost proficient investors. Maybe some stocks will do well; but like in sex, there's a time to pull out. This is only a warning to those actively trading if you didn't already hear.
     
  2. MimiBelle

    MimiBelle Well-Known Member MEMBER

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    More power to anyone screwing around with that. *laugh*
    That's my dad and husband's territory.
    I... don't 'do' stocks. Never had much interest in it, either. My money's in the land. Granted, real state could be/can be construed as...'volatile'. I mean, it doesn't always increase in value... but it's cyclical and (because of that?) somewhat predictable, imo.
    A much safer bet.
    I'm a passive investor.
    'Slow and steady' (but surely)... wins the race, too.
    Wealth-building, for me, is a marathon. Not a sprint.
     
  3. Kemetstry

    Kemetstry going above and beyond PREMIUM MEMBER

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    Consumers cant spend when they are working McJobs. The days of the $20-$30 dollar an hour factory/foundry job is over. That was the american middle class. We have been priced out of the market





    ..
     
  4. Shikamaru

    Shikamaru Well-Known Member MEMBER

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    You may want to adjust your portfolio for more metals and other physical property rather than commercial paper.
     
  5. Asomfwaa

    Asomfwaa Well-Known Member MEMBER

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    Reliability at the expense of wealth?

    If one knows how to trade stocks, it's a better option for collecting wealth.
     
  6. Shikamaru

    Shikamaru Well-Known Member MEMBER

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    One's stock of debt notes and other commercial paper will never be substantive wealth.

    Commercial/financial/capital wealth .... I could concur with that.

    Few people will ever acquire "wealth" trading stocks.
    Most seem to be losing their shirts as we speak ....

    Also, how many people have the skill to trade stocks?
     
  7. jamesfrmphilly

    jamesfrmphilly going above and beyond PREMIUM MEMBER

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    :slobber:
     
  8. Asomfwaa

    Asomfwaa Well-Known Member MEMBER

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    There's different schools of thought on trading. The "Warren Buffet" school has been very successful at getting real wealth through stocks. That method involves buying undervalued stocks and selling them at normal price. The usual school of thought we know of are "buy a stock and hope it goes up" or "buy a stock and hold it until it goes up." Both of those are recipes for disaster. Buffet's method is possibly the second best way to acquire wealth in the American economic system; only bested by actually owning a business. But compared to real-estate, bonds, metals, stocks can make a person wealthy. Philosophically, it's reaping the rewards of investing in a good business--without any of the work of building that business.

    There's a lot more to it. And lots of literature. But I'm not a trader, so I'd be the wrong person to ask about it. Yet mathematically a 15% ROI isn't unreasonable and folk like Buffet go away with 40% ROI which means in 2 years they double their investment . . . 1 million becomes 2 million . . . that's way better than metals, real estate, bonds . . .. Stocks (or Business) is how you retire young.
     
  9. Shikamaru

    Shikamaru Well-Known Member MEMBER

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    I'm more of a "Turtle Trader" myself.

    No asset class has made more millionaires than real estate.

    What is missing here is that Warren Buffett has a business, Berkshire Hathaway, that buys stock in other companies.

    His shares in Berkshire Hathaway account for 95% of his personal wealth.

    (Source)

    Warren Buffett generated his wealth in business .... not stocks.
    His business buys other businesses as well as stocks and bonds in other businesses.
    His business acts as a holding company.
     
  10. Asomfwaa

    Asomfwaa Well-Known Member MEMBER

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    His method works best when trading is light. When 5% of your wealth is 2 billion dollars, you can no longer trade light.

    Nevertheless, after you buy a stock, it goes up in value, and you can only buy so many stocks in one trade. Hence why you can't expect him to use the method any longer. However, it has been successful for him and many others. That's the point.

    There are indices that suggest when a stock will fall in value--next week--so sell before then. Do that enough with a few stocks and you can make the 40% ROI. That's the point.

    Turtle trading won't do that. But if you use your indices right, it's way better than other methods. Especially if you're not starting with money. Real-estate is good if you're starting with money and if you don't mind abusing poor people. :)
     
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