There is an old saying that goes when America sneezes the world catches a cold, well when Warren Buffet sneezes, the markets catch a cold.
At Berkshire Hathaway’s annual meeting, Warren Buffet announced that they had sold all of their major US airline holdings.
This to many would come as no surprise. With restrictions on travel, lockdowns and paper thin margins as it is, airlines have suffered massively during the Covid-19 pandemic.
It is safe to say, rightly or wrongly, that the dumping of these positions has spooked investors. At time of writing American Airlines is down 11.56% premarket, Delta and United -10%.
The Oracle of Omaha also remarked to listeners that they should “never bet against America”. The American Dream lives on it seems, but to the average citizen at this point its probably more akin to a nightmare.
Source:
https://www.ft.com/content/4b707086-4b48-48ab-9369-a3fcf5dd1af3
