Is Buffett Selling Banks, Buying Gold A Warning Sign For Investors?

BRK-A) (NYSE: BRK-B) CEO Warren Buffett has always been a huge fan of bank stocks and a vocal critic of gold.

WFC) and JPMorgan Chase & Co. (NYSE: JPM) and buying gold miner Barrick Gold Corp (NYSE: GOLD).

Should Buffett dumping bank stocks and investing in gold be a red flag that he sees trouble ahead for the U.S. economy?

AAPL) and Coca-Cola Co (NYSE: KO), which represent a combined $134 billion. 

It’s likely the Barrock buy wasn’t even Buffett’s call and probably came from Berkshire investment managers Todd Combs or Ted Weschler, Tilson said. 

Buffett cut his Wells Fargo stake by 26%, his JPMorgan stake by 62% and sold several other bank stocks as well.

“I do think this reflects Buffett’s cautiousness about the current state — and future prospects — of the U.S. economy,” Tilson said.

The fact that Wells Fargo has company-specific problems and Berkshire had become so overweight financials suggests Buffett was likely just trimming the fat and rebalancing the portfolio a bit, he said. 

BAC) stock since July 20, which he certainly wouldn’t have done if he was concerned about the outlook for U.S. banks, in Tilson’s view. 

“In summary, Berkshire’s recent disclosures don’t change my bullishness on either bank stocks … or Berkshire Hathaway.”  

Yet Buffett also took a lot of heat for missing out on tech stocks during the dot-com bubble back in 2000. Berkshire’s stock has more than tripled the performance of the S&P 500 over the last 20 years.

Here’s How Much Investing ,000 In Berkshire Hathaway Stock In 2010 Would Be Worth Today ” data-reactid=”38″>Here’s How Much Investing ,000 In Berkshire Hathaway Stock In 2010 Would Be Worth Today

Why Warren Buffett May Have Changed His Tune On Berkshire Buybacks” data-reactid=”39″>Why Warren Buffett May Have Changed His Tune On Berkshire Buybacks

M.O. Stevens via Wikimedia. ” data-reactid=”40″>Photo by M.O. Stevens via Wikimedia. 

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