Yes, you read the headline correctly. Warren Buffet’s Berkshire Hathaway just sold all of their holdings in the airline industry-valued at $6 billion dollars.
Buffet’s primary concern was due to the Coronavirus, now that airline travel is down 95% for the year. Buffet estimated the airliners will each receive a bailout from the government. Buffet went on to state,
The airline business, and I may be wrong and I hope I’m wrong, I think it changed in a very major way and it’s obviously changed in the fact that their four companies are each going to borrow perhaps average of at least 10 or 12 billion each.
Friends, with each passing day, the catastrophic damage to the economic system becomes more and more apparent. The world has never before experienced such an event, ever. You are living through world history right now.
While the markets are being propped up by the Federal Reserve, this news will certainly spread more fear into the markets come Monday morning.