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all you CAN'T eat Buffet?!.....Warren Buffet dumps all airline stocks.....
Posted by: NewtonMP2100
Date: May 04, 2020 10:18AM
......Bershire Hathaway.......dumps all their airline stocks [ American, United, Delta, Southwest ].....Buffet says it will take years for them to recover.......


.....of course airline stock prices fall......as does the market.....


Airline shares tank after Warren Buffett reveals he dumped airline stocks

......Shares of airline stocks are tumbling on Monday morning after billionaire investor Warren Buffett said Berkshire Hathaway (BRK-A, BRK-B) exited all of its airline stock holdings earlier this month. He made the comments during Berkshire’s annual shareholders’ meeting on Saturday.

American Airlines (AAL), Delta (DAL), and United Continental Holdings (UAL) all dropped more than 12% on Monday, while Southwest Airlines (LUV) fell more than 8%.

Berkshire picked up large positions in the airlines in late 2016, years after Buffett had sworn off buying an airline stock.

In a departure from his normal practices, Buffett went into detail about transactions he made in April, which would normally be disclosed in an SEC 13-F regulatory filing several weeks after the close of the second quarter. Specifically, he said in April Berkshire sold $6 billion worth of securities from its massive stock portfolio.

“I wouldn’t normally talk about it, but I think it requires an explanation,” he said on Saturday. “We were not disappointed at all in the businesses that were being run and the management, but we did come to a different opinion on it.”

Because of the COVID-19 pandemic, airlines are among the industries being hurt by an exogenous shock “far beyond their control,” Buffett said. He later added that if Berkshire owned airlines now, “it would be a tough decision to decide whether to sustain billions of dollars in operating losses when you don’t know how long it’s going to happen or occur.”

Buffett also suggested that the pandemic might also change consumer behavior long-term, pointing out that he hasn’t cut his hair in seven weeks and has been wearing a sweatsuit instead of a suit.

“The world has changed for the airlines, and I don’t know how it’s changed, and I hope it corrects itself in a reasonably prompt way,” he said. “I don’t know whether the Americans will have now changed their habits or will change their habits because of an extended period if it happens that we’re semi shut down in the economy.”

Earlier, the “Oracle of Omaha” said the “future is much less clear” to him as to how business will turn out on the other side of the pandemic. What’s more, if the airline business comes back at 70% or 80% there will still likely be “too many planes” and an “oversupply of airline seats.”

“[It] didn’t look that way when the orders were placed a few months ago when arrangements were made,” he said. “But the world changed for airlines and I wish them well.”



this is like that flight from.......'Lost'.......Oceanic Flight 815........going down......?!



_____________________________________

I reject your reality and substitute my own!



Edited 1 time(s). Last edit at 05/04/2020 10:54AM by NewtonMP2100.
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Re: all you CAN'T eat Buffet?!.....Warren Buffet dumps all airline stocks.....
Posted by: Paul F.
Date: May 04, 2020 10:52AM
The airline industry is going to be damn bloodbath over the next three years.
I'd be surprised if ANY U.S. based international carrier survives.
Regionals like SouthWest may survive, but United, American, and Delta likely won't... or if they do, it'll be a very different looking landscape.



Paul F.
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A sword never kills anybody; it is a tool in the killer's hand. - Lucius Annaeus Seneca c. 5 BC - 65 AD
----
Good is the enemy of Excellent. Talent is not necessary for Excellence.
Persistence is necessary for Excellence. And Persistence is a Decision.

--

--

--
Eureka, CA
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Re: all you CAN'T eat Buffet?!.....Warren Buffet dumps all airline stocks.....
Posted by: pdq
Date: May 04, 2020 11:04AM
Meh. Bankruptcy, screw your creditors, clear your debts, renegotiate your pension obligations, issue more stock, start over.

It’s the American way. Too big to fail.

Rinse and repeat.

Edit: At least the J Crew bankruptcy occurred before folks out-of-the-know could throw away good money at the IPO.



Edited 1 time(s). Last edit at 05/04/2020 11:08AM by pdq.
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Re: all you CAN'T eat Buffet?!.....Warren Buffet dumps all airline stocks.....
Posted by: Steve G.
Date: May 04, 2020 11:29AM
Maybe the airlines can distance the seats for once...instead of cramming their victims in as close as possible?

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Re: all you CAN'T eat Buffet?!.....Warren Buffet dumps all airline stocks.....
Posted by: testcase
Date: May 04, 2020 11:34AM
Between the 737Max debacle and the Covid19 Pandemic, the airlines and cruise industries are super parked. The only thing that does surprise me is how long it took Buffet to dump his airline stock. I'm glad I have an RV. Easy to "isolate in place" and, once it IS safe to travel again, I don't have to worry about who slept in the bed last night. boink smiley
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Re: all you CAN'T eat Buffet?!.....Warren Buffet dumps all airline stocks.....
Posted by: Steve G.
Date: May 04, 2020 11:38AM




no reason, cool pic
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Re: all you CAN'T eat Buffet?!.....Warren Buffet dumps all airline stocks.....
Posted by: d4
Date: May 04, 2020 11:49AM
What happened to being "greedy when others are fearful?"
I guess the "don't be f-n stupid when the shithits the fan" saying prevails all in times like this.



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Re: all you CAN'T eat Buffet?!.....Warren Buffet dumps all airline stocks.....
Posted by: Steve G.
Date: May 04, 2020 05:20PM

Yeah, forget it, Warren.
They ain't going nowhere.
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