NEWS
Warren Buffett Dumps Airline Stock Due to Pandemic
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At the Berkshire Hathaway Annual Shareholder Meeting, which was held virtually this year due to social distancing measures, billionaire investor Warren Buffett revealed the company has sold off all of its airline stock due to the coronavirus pandemic.
According to CNBC, Berkshire Hathaway sold off the entirety of its equity position in the U.S. airline industry, which included positions in Delta, Southwest, American and United.
“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,” CNBC reports Buffett as telling shareholders. “I don’t know if Americans have now changed their habits or will change their habits because of the extended period.”
“I think there are certain industries, and unfortunately, I think that the airline industry, among others, that are really hurt by a forced shutdown by events that are far beyond our control,” Buffett said.
Airlines are facing an unprecedented financial crisis due to the coronavirus pandemic, with travel demand down 95 percent compared to this time last year. Arline executives have predicted the fallout could take several years to recover from.
