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Business

Meeks cashes out on top holding. Here's why

An employee inspects semiconductor chips.
Dario Pignatelli | Bloomberg | Getty Images
An employee inspects semiconductor chips.

"Be fearful when others are greedy and greedy when others are fearful." Warren Buffett

Every investor "hears" this lesson but too few listen to it.

Today, I sold NXP in my "Squawk Box" Platinum Portfolio after the stock rose 22 percent in two days on rumors that the company will be acquired by Qualcomm for about $30 billion. During Friday's session, NXPI's shares were trading as high as $104.64, which equated to a $36 billion valuation.

Obviously, investors like the potential deal because they've also bid up QCOM. Typically, the shares of the purported acquirer drop, but this stock is up 10 percent in the same period.

I agree that this could be an attractive merger, although I think QCOM needs NXPI more than NXPI needs QCOM.