What’s Buffett Think Of Johnson & Johnson (JNJ) and The Procter & Gamble Company (PG)?

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The smartest investor of our age is likely lightening up to rebalance his portfolio, gather up a bigger war chest to hunt gigantic elephants with (sounds a little like a Wild At Heart episode but I digress), or hold cash to wait for better bargains in the marketplace. Buffett is the savviest steward of capital ever, and this move is likely a reflection on current valuations to some degree – many of the names he sold have rallied handsomely, yet other wide moat businesses have not participated to the same degree as the overall market.

Buffett also sold most of his position in GE at the end of last year, but he made plenty of buys along the way as well. Some of his notable sales last year included 25% of his Visa Inc (NYSE:V) holding, 16% of his ConocoPhillips (NYSE:COP) holding, and most of his Kraft Foods Group Inc (NASDAQ:KRFT) holding. He blamed poor performance for hitting the eject button. Buffett has long said he would never sell a share of Coke and I take him at his word. Long-term investing, after all, is a game of patience.

All in all, Buffett is someone who never let’s skepticism keep him out of the stock market. Even when he closed his partnerships and bought an ailing textile firm he was still “all in” on the US equity market. Don’t expect him to start shorting Netflix, Inc. (NASDAQ:NFLX) and Salesforce.com even though their market multiples suggest the stocks are extremely overvalued. Hedging is simply not Mr. Buffett’s style, and his style is clearly working.

The article Is Buffett Bullish? originally appeared on Fool.com.

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