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Anonymous ID: b16ede March 5, 2020, 9:32 a.m. No.8324998   🗄️.is đź”—kun   >>5014 >>5360 >>5452 >>5619 >>5644

Warren Buffett’s big bet on airlines could have lost nearly $3 billion in 3 weeks

 

The selloff in airline stocks resulting from the coronavirus outbreak could be costing Warren Buffett nearly $3 billion over the past few weeks.

 

Buffett’s investment arm Berkshire Hathaway Inc., of which he’s chairman and chief executive office, was Delta Air Lines Inc.’s largest shareholder with a stake of 70.91 million shares as of Dec. 31, according to Berkshire’s latest 13F filing with the Securities and Exchange Commission.

 

Berkshire also owned 42.50 million shares of American Airlines Group Inc., 53.65 million shares of Southwest Airlines Co. and 21.94 million shares of United Airlines Holdings Inc., making him the second-largest shareholder in each of those airlines, according to FactSet.

 

Since Feb. 12, when the U.S. Global Jets exchange-traded fund US:JETS started a 15-session stretch, in which it is on track to fall for a 14th time, that ETF has tumbled 30%. That compares with a 17% drop in the Dow Jones Transportation Average US:DJT and the Dow Jones Industrial Average’s US:DJIA 11% selloff over the same time, amid growing fears of the global economic impact of the coronavirus outbreak, which was first detected in China.

 

Over the same time, shares of American US:AAL have lost 14%, Delta US:DAL have shed 14%, Southwest US:LUV have dropped 13% and United US:UAL have given up 27%. On Thursday, shares of Southwest slumped 3.0% after the company cut its first-quarter unit revenue guidance, while United’s stock dropped 6.6% after the carrier said it was reducing U.S. flights and asking worker to take unpaid leave. Separately, the U.K.’s largest domestic airline Flybe collapsed Thursday, with all flights being grounded.

 

If Berkshire’s holdings remain the same as of Dec. 31, the value of its investments in those carriers could have declined by a total of about $2.85 billion since Feb. 12.

https://www.marketwatch.com/story/warren-buffetts-big-bet-on-airlines-could-have-lost-nearly-3-billion-in-3-weeks-2020-03-05

https://www.finviz.com/insidertrading.ashx?oc=1067983&tc=7