24/7 Wall St.

Warren Buffett is considered by many people to be the best investor of the modern era. Getting to be one of the world’s richest men on paper may have something to do with that. This makes the inner workings of the Berkshire Hathaway Inc. (NYSE: BRK-A) investment portfolio more than just a little important. One common investor strategy is to peruse the Buffett and Berkshire Hathaway stock portfolio each quarter. Seeing each new position taken by Buffett or his portfolio managers has become a hobby and passion for the investing community. After all, the richest of the rich must know at least something.

What if it turns out that it is just as important, or perhaps even more important, to know when Berkshire Hathaway or a member of Buffett’s team decides to sell a stock? Again, being the richest of the rich means you must know something. Or does it?

24/7 Wall St. has tracked the Berkshire Hathaway portfolio changes every single quarter for 10 years, and one of the cofounders has tracked these quarterly changes since the mid-1990s. It turns out that tracking Buffett’s stock sales in public companies outside of Berkshire Hathaway may be more important than tracking when Team Buffett actually buys a stock. History has shown that Buffett’s stock picks tend to rise through time. That being said, many of the stocks that Buffett or his portfolio managers sell out of end up rallying massively in the years afterward.

It is important to not think that Buffett and his investing managers are losers by any means. Buffett and his team are frequently considered to be value investors, or at least high-quality investors who avoid troubled companies.

24/7 Wall St.
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