Berkshire Hathaway has sold its holdings of US Airline stocks

Berkshire Hathaway has sold its holdings of US Airline stocks

Berkshire Hathaway has sold its airline stocks as part of its realignment after the Coronavirus outbreak. Speaking Saturday at the company’s annual shareholders meeting, CEO Warren Buffet, said that ’the world has changed’ after the pandemic hit America. The prior stake, worth north of $4 billion dollars, included positions in United, American, Southwest and Delta Airlines.

Skeptic
Skeptic
Meyer
Meyer 3 weeks

Monday's markets are going to be a fun watch...

M. Schlegel
M. Schlegel 3 weeks

Airlines barely turning a profit in good years pumping the existing proofits into stock buybacks and surprise surprise there are ups amd downs in the economy. Sure the virus wasn’t anticipated and out of the airlines control but they could have been in a much better position than they are. In the end they will get gov money to keep running which totally breaks our free market. A free market only works if you let companies go bust. I totally understand that nobody wants all airline companies go bust and than have a US without domestic airlines after the crisis and many other countries prop up their companies as well but that still doesn’t change the fact that you’re taking a very essential part out of the free market. Can’t “privatize the earnings and socialize the losses” that gives huge wrong incentives because it means once you’re big enough you don’t have to care about times where economy goes down a little because gov will come to the rescue everytime you need it (somewhat exaggerating here). I don’t say we shouldn’t rescue certain companies and hand out gov money in this crisis, we need to do it, the economy will get utterly destroyed if we don’t. But we have to be fully aware of the consequences and really look into how to avoid wrong incentives.

Top in Business
Get the App