ATLBob

Why Did Buffett Cut Positions in JNJ and PG?

When I read the Buffett letter/Berkshire report on Saturday I also found this tidbit interesting, especially in light of what Jim Cramer has whined about lately regarding Buffett's decision to sell some of his JNJ. I guess it shouldn't be a surprise that someone like Cramer, who seems to be a 'bi-polar trader' who needs an 'outrage of the week' would find something to carp about with the JNJ sale. Nothing like taking Buffetts 'buy America' comments to an extreme as an excuse to rant. I guess Cramer failed to recognize that all three of these sold companies were international in scope and that the funds were used to invest in other opportunites in the US.

Basically, Cramer says that it's OK for him recommend that we buy or sell anything at anytime as often as we want, but Buffett should buy and hold every US based equity forever, regardless of the opportunity cost.