Legendary Investor, Warren Bufett sells airline stocks, you ?First thing first, let's find out when did he buy this DAL.
It was bought on 15 Nov 2016 at approx 47.67. Today's share price is 22.48, a loss of 151 million (ballpark) based on 6 million shares (ballpark)
Digest that for a minute !
Now, based on his value investing philosophy, he claims to buy and not sell forever and hold on to stocks for as long as possible. So when he sells, it is BIG NEWS to the market !
Of course, we are not arguing if he has other protections like buying puts and other hedging instruments, that is for another day !
Already, we have seen 2 counters , Boeing and Ryan Air plummeting its share price.
I read somewhere about when people are forced to change to adapt to a new environment, initially they resist (those who still go out party and head to the beach) but after a while, they adapt and get comfortable so much so when the external environment returns to normal, they will not want to come out of their comfortable caves...... i.e., they may not want to travel for the time being.
Hopefully, this does not apply to you and me as I love to travel and see the world, man !
See my chart for where I think it is heading next.
