I listened to Buffett meeting live - IMO, what he said is a lot worse for BA than for the airlines.
As to "dumping his entire stake" that is somewhat loaded statement. What he said is that he doesn't believe in doing thing half way. If a company is worth holding, then it is worth holding in its entirety, if not, then there is no point in just selling part of it. He also said that the airlines had good management and it was not their fault. And that he was surprised to be able to sell them at the prices that he did, even though he sold at a loss.
His main point was not that the airlines are going to lose money in the near term, but he thinks the consumer habits maybe changing for good and that there are too many airplanes. He will need to watch over the next 5 years to be sure.
Regardless, I think BA will do worse than the major airlines.
On a different note, Buffett said he didn't believe the big techs like Apple, Amazon, Google, etc were overvalued. He never came out straight and say if he'd be a buyer of them now, but he was not against the idea. It seemed to me that what he was really saying was that the Big Tech is about reasonably priced, so he is not interested b/c he prefers to buy undervalued stocks. |
