Warren Buffett dumps US airline stocks, saying 'world has changed' after Covid-19
The legendary investor indicates that financial markets could still have further to fall as worldwide cases edge towards 3.5m.
Warren Buffett, the legendary American investor, has sold his firm’s entire holdings in the four major US airlines, warning that the “world has changed” for the aviation industry because of the coronavirus crisis.
In comments that will send shockwaves through financial markets already pulverised by the economic shock of the outbreak, Buffett said the outbreak could have an “extraordinarily wide” range of possible outcomes.
Shares around the world are poised for another torrid week as worldwide cases of the virus creep towards 3.5 million and deaths near 250,000. Despite massive central bank and government intervention, stock markets have been rocked by the continued spread of Covid-19, the plunge in oil prices and Donald Trump’s threats to reignite his trade war with China.
Buffett, 89, who has become known as the Sage of Omaha for his investment skill over the decades, indicated that he believed stock markets had not reached the bottom of the current dip.
Link to the article
That is a clear sign that the aviation world is in for a rough few years given Warren Buffett's track record. So will the aviation world in the west be back to pre-Corona numbers before 2025? Or will this be the start of a real change?