Was Warren Buffett Right Dumping These Stocks?

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In DISH Network Corp (NASDAQ:DISH), Mr. Buffett sold out his stake over a year ago previously holding 547,300 shares. In fact, DISH Network was a short-time investment as the stake was initiated during the second quarter of 2013, and the position was closed six months later. DISH Network Corp (NASDAQ:DISH)’s stock gained 36% in the second half of 2013, although beween July 2013 and until now it surged by more than 72%, which means that Mr. Buffett could’ve held on to his stake for a couple of months longer. Instead of DISH Network Corp (NASDAQ:DISH), Mr. Buffett bought shares of another broadband provider, Liberty Global, disclosing a stake in the company as of the end of 2013 and he still owns some 10.82 million class A shares as of the end of last year. Another investor that held shares of DISH Network Corp (NASDAQ:DISH) for a much longer period and is still among the company’s shareholders is billionaire Leon Cooperman, who last disclosed holding 2.22 million shares of the company.

During the first quarter of 2013, Mr. Buffett closed his stake in General Dynamics Corporation (NYSE:GD), selling 3.88 million shares of the aerospace and defense company. The holding has been in the equity portfolio since the third quarter of 2011, when Berkshire first disclosed ownership of 3.06 million shares, while in the following quarter it was raised to 3.88 million shares. The stock appreciated by over 20% during the period when Berkshire held shares, and since the stake was closed it surged by 87%. What’s also interesting is that when Mr. Buffett held shares, his stake amassed around 15% of the company, which made him the second-largest shareholder. Even though the holding in General Dynamics Corporation (NYSE:GD) represented a small percentage of Berkshire’s equity portfolio, Mr. Buffett’s move into the stock sparked many speculations that he might even buy the whole company, which however did not materialize. This is a good thing, probably, because some of the rumors also stated that if he bought General Dynamics, he would’ve liquidated the company by selling its assets. Meanwhile, at the end of 2014, the largest shareholder of General Dynamics Corporation (NYSE:GD) is James A. Star’s Longview Asset Management, which owns 33.32 million shares; the $4.59 billion stake amasses 86% of the fund’s equity portfolio.

Disclosure: none

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