Berkshire Hathaway sells part of Delta, Southwest airline stakes
Source: Reuters
BUSINESS NEWS APRIL 3, 2020 / 5:40 PM / UPDATED 37 MINUTES AGO
(Reuters) - Warren Buffetts Berkshire Hathaway Inc (BRKa.N) said on Friday it sold about 18% of its stake in Delta Air Lines Inc (DAL.N) and 4% of its holdings in Southwest Airlines Co (LUV.N) this week, as the coronavirus pandemic drives the airline industry into perhaps its biggest crisis ever.
According to regulatory filings, Berkshire sold nearly 13 million Delta shares for about $314 million and roughly 2.3 million Southwest shares for about $74 million.
The sales were conducted on Wednesday and Thursday, the filings show. Berkshire previously owned about 11.1% of Delta stock and 10.4% of Southwest stock, according to Refinitiv data. No reasons for the sales were given.
Berkshire did not immediately respond to a request for comment sent to Buffetts assistant.
Read more: https://www.reuters.com/article/us-berkshire-stake-airlines/berkshire-hathaway-sells-part-of-delta-southwest-airline-stakes-idUSKBN21L393?il=0
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Well if you only have ten people on the plane and the commercial flights are reverting to cargo............and cargo is down, well you sell...........................
Sherman A1
(38,958 posts)pandemic passes.
OAITW r.2.0
(24,504 posts)With teleconferencing, there's less value sending a lot of reps to the field. Why not save * and make that the business standard. People vacationing may not be as likely to travel by plane. I think the Cruise Industry is going to crater as well.
Buffett probably wished he had sold 4 weeks ago....
Initech
(100,081 posts)But the airline industry will go through a serious safety and cleanliness overhaul before things get back to normal. Cruises though? I can't imagine anyone in their right mind going on a cruise after this. They too will have to adapt to the new normal or they will be a thing of the past.
cstanleytech
(26,295 posts)provides of saving on travel time as well as opening up more places that people can travel to.
That doesn't mean it will be the same as now as I suspect what you will see at least one merger if not more as well as I think you will see airlines struggle for a bit to entice people back and the only way to do that will either by lowering fairs and or by giving them more seat room.
oldsoftie
(12,555 posts)Supposedly their air filtering system does filter 99% of everything, from what i have read. But the guy next to you isnt. So everyone mask up.
at140
(6,110 posts)Airline stocks are cheap, buy them now to double your money.
Hey I beat Berkshire Hathaway this year. That stock is down 22%, my portfolio is down 11%.
oldsoftie
(12,555 posts)Scruffy1
(3,256 posts)I'm not talking about mergers, but liquidation. Stockholders are last in line. They are currently worth a Trump promise imho.
at140
(6,110 posts)diversify and spread your money into 5 companies, preferably the largest ones.
Such as Carnival, American air, etc
Then be patient. Use money you wont need for 2 years.
You have excellent chance of doubling your money in 2-3 years.
oldsoftie
(12,555 posts)Canoe52
(2,948 posts)Does this happen to anyone else?