Investor sentiment for stocks is at a very low level, but some well-known investors are taking positions in stocks. According to the video below, Warren Buffett and Berkshire Hathaway (BRKA/BRKB) just added significantly to Berkshire’s already large stake in Johnson & Johnson (JNJ). In addition, Buffett is buying other healthcare related stocks such as Becton Dickinson (BDX).
Stanley Druckenmiller, who just closed his very successful hedge fund, bought Wells Fargo (WFC). And, Druckenmiller and George Soros both bought Internet technology firm Akamai (AKAM).
Here is a short piece from MarketWatch.com/Dow Jones on what these billionaire investors are buying:
Source: Marketwatch.com
Click on the embedded video to watch. If you have trouble getting the volume to work, here is another link to the piece.
This billionaire buying binge should not necessarily be taken as a vote of confidence on the stock market overall, but rather that these brilliant investors believe there is real value in these stocks. Incidentally, Wells Fargo was just purchased by Druckenmiller, but it is also one of Buffett’s top holdings. Here are the top five Berkshire holdings:
Coca-Cola (KO)
Wells Fargo (WFC)
American Express (AXP)
Kraft (KFT)
Johnson & Johnson (JNJ)
Hat tip for the Berkshire to five holdings: iStockAnalyst
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QUICK RUN OUT AND BUY WARRENS PICKS? Then he might sell them and make a nice profit.
The moronic selling of Wells Fargo is presenting an incredibly attractive buying opportunity. The valuation has reached absurdly low levels, reminiscent of 1991-92. Note that Wells is also the second largest holding in billionaire Prem Watsa’s portfolio.
Kurt Brouwer is a fee-only financial advisor with three decades of experience. He is the chairman and co-founder of Brouwer & Janachowski, LLC. Kurt has written books, articles and hundreds of blog posts on mutual funds, ETFs and other investment topics. E-mail: kurt.brouwer *at* gmail.com.
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