US President Donald Trump was seen questioning Billionaire investors Warren Buffett’s move to sell his entire stake in the big four airline carrier of the United States.
US President Donald Trump was seen questioning Billionaire investors Warren Buffett’s move to sell his entire stake in the big four airline carrier of the United States. The US president termed the move as a ‘mistake’ as stocks of the four companies that Warren Buffett’s Berkshire Hathaway previously owned, surged on Friday. “Warren Buffett sold airlines a little while ago, he’s been right his whole life but sometimes even somebody like Warren Buffett — I have a lot of respect for him — they make mistakes,” Trump said while addressing the media at the White House. Trump added that Buffett should have kept these, “because the airline stocks went through the roof today and others did too.”
Warren Buffett who is often touted as one of the sharpest minds when it comes to stock markets investment, earlier in May in the annual general meeting of his firm Berkshire Hathaway told investors that they have sold all airlines stocks they owned. “The airline business and I may be wrong and I hope I’m wrong, but I think it changed in a very major way, and it’s obviously changed in the fact that there are four companies are each going to borrow perhaps an average of at least 10 or 12 billion each,” Warren Buffett had said. Known as the Oracle of Omaha, Warren Buffet has a net worth of $79 billion, according to Forbes also owns a number of key businesses through his firm Berkshire Hathaway.
Hit by the coronavirus pandemic the airline business across the globe has been hit hard as the world cancelled all travel plans for the near future from the fear of the virus. Warren Buffet said that his firm invested $7-$8 billion to own roughly 10% of the four biggest airlines in the United States — American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines. The stock price of American Airlines surged close to 57% in the last three trading sessions, while those of Delta Air Lines jumped 20%. Even Southwest Airlines went up by 5% and United Airlines gained 26% in the same period. This made Trump question Buffett’s decision to completely sell his stake in the aviation stocks. However, year-to-date these stocks are still down somewhere between 30% to 55%.