Warren Buffett Sold His Entire Stake in These ETFs Before the Current Sell-Off. Should You Follow His Lead?
When you've led the way in creating a trillion-dollar business while personally having a net worth of over $160 billion, people are much more inclined to follow your money moves and listen to what you have to say. That's why Warren Buffett's actions and words are closely followed and analyzed.One specific action -- Berkshire Hathaway selling its entire stake in the Vanguard S&P 500 ETF (NYSEMKT: VOO) and SPDR S&P 500 Trust ETF (NYSEMKT: SPY) -- has caused panic among investors who took it as a warning sign of incoming stock market troubles.Considering that the S&P 500 (SNPINDEX: ^GSPC) is down for the year and has entered correction territory (when a major index falls 10% to 20% from its most recent high), Berkshire's moves have had a stronger microscope put on them. However, the bigger question for us to consider is: Should investors panic and follow Buffett's lead? Let's take a look.Continue reading
When you've led the way in creating a trillion-dollar business while personally having a net worth of over $160 billion, people are much more inclined to follow your money moves and listen to what you have to say. That's why Warren Buffett's actions and words are closely followed and analyzed.
One specific action -- Berkshire Hathaway selling its entire stake in the Vanguard S&P 500 ETF (NYSEMKT: VOO) and SPDR S&P 500 Trust ETF (NYSEMKT: SPY) -- has caused panic among investors who took it as a warning sign of incoming stock market troubles.
Considering that the S&P 500 (SNPINDEX: ^GSPC) is down for the year and has entered correction territory (when a major index falls 10% to 20% from its most recent high), Berkshire's moves have had a stronger microscope put on them. However, the bigger question for us to consider is: Should investors panic and follow Buffett's lead? Let's take a look.
