Warren Buffett Watch has repeatedly warned against paying too much attention to rumors and speculation about what Buffett is, or might be, buying at any particular time. 

You may remember that after the Wall Street Journal speculated Buffett might be looking at Countrywide Financial, the man himself reminded our Becky Quick that all the speculation about him is nothing more than speculation.

Should the rumors and speculation be ignored entirely? 

Writing on Seeking Alpha, frequent CNBC guest Barry Ritholtz highlights a Bloomberg piece detailing how five of seven recent rumored Buffett-buy stocks are down in the wake of those rumors.  In the case of Hovnanian Enterprises, the drop reached 41%.

While Ritholtz concedes that "false rumors are no basis for an investing strategy," he and Bloomberg's David Wilson do suggest they could amount to a "Buffett Sell Signal," especially when it comes to Bear Stearns.

Questions?  Comments?  Email me at buffettwatch@cnbc.com