Why would anyone buy shares in companies that the World's greatest investor has sold?
That is a real good question and may explain why Procter & Gamble Co. (NYSE: PG) has been the second worst performer in the Dow over the past 12 months i.e. a dog of the Dow.
On May 25th last year, the Motley Fool wrote:
Berkshire Hathaway (NYSE:BRK-A) (NYSE:BRK-B) . . . just closed (disposed of) its Procter & Gamble (NYSE:PG) position -- over $4 billion worth -- according to its latest 13-F filing. That holding had been large enough to qualify as one of Berkshire's "big four" investments, and has been on its books for over a decade.
I am sure a lot of investors who follow Warren Buffett would have sold PG simply because Buffett is no longer an owner. It seems that alone would have put a big downward pressure on the PG share price over the past 12 months - maybe even enough to make it a Dow Dog.
Anyway we added it to our Dogs of the Dow portfolio last week at just under $74. Lets hope the abnormal selling is over and PG's share price begins to perform again.