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Warren Buffett appears to prefer cash over consumer stocks as the latest 10-Q from Berkshire...

Warren Buffett appears to prefer cash over consumer stocks as the latest 10-Q from Berkshire Hathaway (BRK,BRK.A shows a buildup of the firm's cash position at the possible expense of powerhouse names such as Kraft (KFT +0.5%) and Procter & Gamble (PG +0.5%). Berkshire's cost basis in its consumer portfolio slipped to $9.84B from $12.3B during Q2.
Comments (7)
  • Chez le Bart
    , contributor
    Comments (14) | Send Message
     
    Makes one wonder whether Mr. Buffet is becoming negative about the economy and/or if he is hedging his bets on the election and the projected fiscal cliff scenario.
    6 Aug 2012, 01:23 PM Reply Like
  • Sir. Monaco
    , contributor
    Comments (367) | Send Message
     
    past tense reporting,

     

    must look at fair values compared to cost basis, not just change in cost basis...prudent portfolio management in the beginning of year,

     

    they know people look at these 10-Q's, I would not bet against BRK's belief in consumer products
    6 Aug 2012, 03:46 PM Reply Like
  • Sittingcrow
    , contributor
    Comments (105) | Send Message
     
    The days of Warren being a "genius" are over. I would not follow his lead. Eventually the field catches up and passes the leader. Remember, Greenspan was once a genius.
    6 Aug 2012, 05:20 PM Reply Like
  • David A Booth
    , contributor
    Comments (153) | Send Message
     
    It's funny how familiar this sounds. I recall how many people were saying this a dozen years ago because Buffet wouldn't buy tech stocks.
    10 Aug 2012, 09:38 AM Reply Like
  • Sittingcrow
    , contributor
    Comments (105) | Send Message
     
    He should be picking more dividend yielding stocks- utilities, mreits, mlps for his clients- not cash. Most of his retail clients are elderly retirees and now need income because of this low interest rate environment.
    11 Aug 2012, 12:37 PM Reply Like
  • Robert Peck
    , contributor
    Comments (78) | Send Message
     
    If Obama gets reelected the market will be lumbering under 4 more years of anti-business environment and should look bad and cash might look better then.

     

    If Obama is defeated, repeal of Obama care becomes much more likely (and if the Republicans take the Senate—a real possibility— and the white house, Obama Care will be gone before it kicks in). This will mean buying opportunities in the health care field and insurance companies who will benefit by not being clobbered with all the uncertainties (can of worms) that they will face if/when Obama Care starts kicking in with GREAT UNCERTAINTIES ("pass it now, read it later, Pelosi) in how it will apply (regulations still to be written and much left open to interpretation ahead).

     

    Warren might want a couple billion cash on hand and ready to invest according to the outcome on Obama and Obama Care. He's not stupid!
    7 Aug 2012, 10:46 AM Reply Like
  • late for dinner
    , contributor
    Comments (12) | Send Message
     
    Don't forget Buffet was afraid to be labeled and supported Obama. Obama is the success of affirmative action over ability. Warren looks out for Warren. The nice folksy guy is a great act.
    1 Sep 2012, 12:13 AM Reply Like
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