Everyone keeps using the Ben Graham and Warren Buffet analogy of...

Everyone keeps using the Ben Graham and Warren Buffet analogy of a contrarian investment. However, Warren and Ben both exit positions of stocks that have an old business model, poor management or operate in an under-performing industry. Below are three stocks which Warren is selling.

During the last quarter, Berkshire reduced the sizes of some of:

• IBM - Buffett continued to be sell off last year. Berkshire disposed of 17.1 million shares of IBM during the quarter. IBM was formerly one of Berkshire's largest stock investments. Now, it's barely in the top 10.
• Another notable sale is the significant reduction of Berkshire's Wells Fargo. In the wake of the infamous "fake accounts" scandal, Buffett defend the bank and called it an "incredible institution." Now it appears that he isn't quite as optimistic about the bank's future, or at least feels that his capital could be put to better use elsewhere.
• Also, Buffett sold a portion of Charter Communications. Berkshire now owns 2.8% of the cable giant. Cable/fibre in America much like Australia is a dying industry.

Notice that he is reducing his size in IBM and Wells Fargo (probably both considered his crown jewels). Smart investors also know when to exit and not just buy.