Buffett pulls back on buying stocks

Updated

After buying large when the stock market tanked, Warren Buffett now thinks its time to pull back on buying stocks. He's cleaning out some dead wood and replacing it with corporate and government debt rather than new stock purchases. Even though the economy is on the mend, Buffett is concerned that it is still weak.

That's a very different tune than he was singing last year when he invested billions in Goldman Sachs (GS), General Electric (GE), American Express (AXP), Bank of America (BAC), Wells Fargo (WFC) and U.S. Bancorp (USB). Many of his picks got bailouts from the government, and Buffett benefited from the help, along with all private investors who did the same. If his picks pan out, his payoff could be tremendous.

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