|
Warren Buffett sells $6 billion in airline stock
https://www.forbes.com/sites/sergeik.../#53d5ddda5c74
Warren Buffett sold all $6 billion of the stock he owned in 4 major American airlines. |
Also reported by the Beeb here: https://www.bbc.co.uk/news/world-us-canada-52518186
|
Surprised he owned airline stock , on record saying airlines are crap businesses .
|
Amazing times : selling in the middle of a dip and saying : I made a mistake but I only lost only 4 Billions .. More than the annual GDP of South Sudan ...:rolleyes:
That said bad news for us , as he has probably access to good information , and when those guys are starting betting against an aviation recovery is not a good sign for all of us . |
Originally Posted by Toruk Macto
(Post 10771003)
Surprised he owned airline stock , on record saying airlines are crap businesses .
|
If he is selling who is buying and why?
|
Originally Posted by Toruk Macto
(Post 10771003)
Surprised he owned airline stock , on record saying airlines are crap businesses .
Originally Posted by Old Dogs
(Post 10771005)
True. Mr Buffett once said, "The way to make a small fortune is to start with a large fortune and invest in airlines", or words to that effect.
Buffett says 'never again' to airline businessAndrea RothmanPARIS ANDREA ROTHMAN Bloomberg News Published March 29, 2001 Billionaire investor Warren Buffett said he's sworn off investing in airline stocks since his $358-million (U.S.) "mistake" in US Airways Group Inc. "Now if I get the urge to invest in airlines, I call an 800 number, and I say: 'Hello, my name is Warren, and I'm an air-o-holic,' " he said. The 70-year-old chairman and chief executive officer of Berkshire Hathaway Inc. said in 1996 that the deal was a "mistake." Berkshire acquired the stake in the form of preferred stock for $358-million in 1989. It has since sold the stake, later converted to common shares, without saying whether it made money. Mr. Buffett told journalists aboard a London-to-Paris flight on Tuesday that in the last 20 years, 130 U.S. airlines have gone broke. "It's unbelievable," he said, offering to dig out a list of the failed companies he keeps back in his office in Omaha, Neb., to show doubters. "The airline business from the time of Wilbur and Orville Wright through 1991 made zero money, net," he said. "If capitalists had been present at Kitty Hawk when the Wright brothers' plane first took off, they should have shot it down." Mr. Buffett invited journalists on the trip aboard a Boeing business jet to discuss Executive Jet Inc., a Berkshire Hathaway company that sells partial shares in business planes. |
My money is on AA entering Chapter 11 in the coming months then restructuring to a leaner model.
|
Why oh why is this even being given the air time? He thought he was investing in safer times for a return. Oh well Mr Sage, you failed on this one.
Who cares, you've lost some cash - most of us in the industry will lose our livelihoods. Move on, nothing to see here. |
Originally Posted by LGW Vulture
(Post 10771039)
Why oh why is this even being given the air time? He thought he was investing in safer times for a return. Oh well Mr Sage, you failed on this one.
Who cares, you've lost some cash - most of us in the industry will lose our livelihoods. Move on, nothing to see here. |
Seeing some similarities to the oil service industry. Really hope it's not going to be the case as well with overcapacity and little demand where newly built ships to drill cannot find work and are scrapped eventually... Buffett was spot on earlier though as airlines for a brief period was able to deliver some decent returns for a few years at least Delta and UAL in the US.
|
Just wanted to add this. Warren said the same 20 years ago.
In other words, how to push retail investors into selling, so he can scrap cheap. I might be wrong as well, of course. https://www.theglobeandmail.com/repo...ticle25435835/ |
Originally Posted by LGW Vulture
(Post 10771039)
Why oh why is this even being given the air time? He thought he was investing in safer times for a return. Oh well Mr Sage, you failed on this one.
Who cares, you've lost some cash - most of us in the industry will lose our livelihoods. Move on, nothing to see here. |
Originally Posted by Toruk Macto
(Post 10771003)
Surprised he owned airline stock , on record saying airlines are crap businesses .
Buffett is big enough to push the market price in either direction he may even have bought them for less and was taking a profit. |
Buffet has a huge war chest of cash (~$50B) ... which he DIDN'T spend during the stockmarket lows in March
More investors are concerned about these implications than the Berkshire Hathaway losses this quarter. |
Originally Posted by Deltasierra010
(Post 10771281)
A week ago oil was being traded at a negative value because sellers could not find buyers at any price when the contract ended, it was only virtual oil there was no intention of delivering physical commodity.
|
Originally Posted by unworry
(Post 10771400)
Buffet has a huge war chest of cash (~$50B) ... which he DIDN'T spend during the stockmarket lows in March
More investors are concerned about these implications than the Berkshire Hathaway losses this quarter. And funny enough chimes in with my own gut feeling that we will see much lower prices in the not too distant future, and that might be a good time to buy (except Amazon probably). |
Originally Posted by eimin
(Post 10771263)
Just wanted to add this. Warren said the same 20 years ago.
"Now if I get the urge to invest in airlines, I call an 800 number, and I say: 'Hello, my name is Warren, and I'm an air-o-holic,' " he said.
Originally Posted by dc9-32
(Post 10771014)
My money is on AA entering Chapter 11 in the coming months then restructuring to a leaner model.
Originally Posted by Denti
(Post 10771407)
And funny enough chimes in with my own gut feeling that we will see much lower prices in the not too distant future, and that might be a good time to buy (except Amazon probably).
American Air’s $1 Price Target at Evercore Implies 92% CollapseBy Esha DeyMay 1, 2020, 9:44 AM EDT American Airlines Group Inc. received a big blow from Wall Street on Friday as Evercore ISI analyst Duane Pfennigwerth slashed his price target on the Fort Worth, Texas-based carrier to $1 from $10. That would imply a 92% rout in the stock, which closed at $12.01 on Thursday. The airline, which entered the coronavirus-fueled crisis with the weakest balance sheet in the group, may not see “meaningful” recovery in its share price, the analyst said. As American, and the entire industry, tries to raise additional liquidity, Evercore estimates its net debt will far exceed revenue by the end of this year. American’s total debt stood at a little more than $34 billion as of March 31. |
...perhaps these number from A Major US Carrier will explain the depth of disaster the airlines around the world are experiencing. Multiply this by all the other US carriers, and then extrapolate onto the European airlines etc...
https://cimg1.ibsrv.net/gimg/pprune....a7144045b5.png https://cimg2.ibsrv.net/gimg/pprune....32d2a2e8bf.png https://cimg3.ibsrv.net/gimg/pprune....5f475b8f59.png https://cimg5.ibsrv.net/gimg/pprune....6194e2c2b5.png https://cimg6.ibsrv.net/gimg/pprune....09509e1e40.png |
Originally Posted by mngmt mole
(Post 10771439)
...perhaps these number from A Major US Carrier will explain the depth of disaster the airlines around the world are experiencing. Multiply this by all the other US carriers, and then extrapolate onto the European airlines etc...
The European carriers and the expat carriers can do 'redundancies' out of seniority order and unlike a U.S. airline furlough, there is no guarantee of being rehired if things ever pick back up. Or, as BA suggests for an opener, sack everyone and rehire them at greatly reduced wages and benefits. If at all. |
| All times are GMT. The time now is 16:04. |
Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.