Buffet sells airline shares

Seems he got out. Maybe while the getting was good? Perhaps to increase his cash holdings for the next big drop in the market? Perhaps both? I suspect it’s both. What say you?

Got out?

 He sold 13 million shares of Delta Airlines and 2.3 million shares of Southwest

Berkshire Hathaway still owns 59 million shares of Delta and 51.3 million shares of Southwest Airlines.

That's not hardly getting out.

Didn’t know how much he had in each company. News article didn’t provide that info. So I said, it “seems”. Figured someone would provide some insights, thoughts, or ideas. You did. Thanks!

I would consider that size reduction a sign.

Maybe he just wants to lock in a tax loss while he uses the freed up capital to buy back BRK stock while it's depressed.

Also, with the government loaning money to airlines but also demanding equity stakes or warrants, who would want to be in business with Nancy Pelosi on the board of directors ?

Yup a sign

Government wants
A stake in airlines? Government isn't supposed to be in business. Is this for real? Like Europe?
mt

Don’t think they “want” it but for the sake of the taxpayers they need to get something for their bail money

chinese Buffet?

Saving the taxpayer destroyed the free market. And to think government doesn’t want control is a little naive. Remember they’re the ones that want to regulate your life, take your guns, and make the working American pay for illegal aliens.

Serious as a heart attack Mike. Just like when they "loaned" money to the car makers back in 2008-9

Here I was thinking they destroyed the taxpayer to save the free market

There, fixed it for ya. Now you’re right.

Fair enough! Lol

Well well, Buffet did sell all his airline stocks. Hmmmm.

And they say you can’t time the market???

He'd have looked smarter had he sold them a couple months ago.

He violated my #2 rule. NEVER invest in an airline !

He lost in the 2008 bs and came out smelling like a rose. He intends to do it again. Can’t say when, it’s cloudy and the crystal ball won’t charge, but we’re gonna be going downhill in the market in the near future. The dip will be a little deeper, look before you leap.

Yahoo finance says he sold all of his airline stocks.

Yep, it looks like he has sold all of his airline stocks now. Apparently he sold in in different transactions to be able to avoid regulatory disclosure regulations.

I think he sold in multiple transactions to avoid depressing the price. That would have cost him even more.

What regulations would require prior notice of a sale ?

I don't know. I think I did not phrase my response very well. Here is what the article I read said.

Since the pandemic started, Buffett has taken different approaches to the airlines. In March, he acquired more of Delta’s shares. However, as the outlook turned grimmer, Berkshire started selling his stakes in Delta and Southwest. At the beginning of April, Berkshire sold 2.3 million Southwest shares and 13 million shares of Delta. It turned out that these sales were aimed to reduce the Berkshire stake below 10%. This allowed the company to continue selling without the need to disclose the news in SEC filings.

Interesting. I can't find any rule that requires any notification BEFORE a sale. That would be crazy as it would depress the price prior to the sale. Some companies and corporate officers use structured sales that are executed on specific dates several times a year. The SEC is notified of those instances but it isn't public information until after the trades have taken place.

For sure the % of shares owned by BRK required SEC notification AFTER the sales. That would be normal.

Buffett usually sells all shares once he decides to sell any.

Was this a Yahoo article ??

Here's the article I read.

https://simpleflying.com/buffett-sells-stocks/

OK I think I get it now. Once he sold his holdings down below the 10% threshold he no longer had to file reports with the SEC concerning future sales. Nevertheless, those reports are only required within 6 weeks after the transactions. So it looks like just a paperwork reduction effort.

The other thing he may have been thinking was that IF his sale caused an even bigger drop in the prices of those airlines, he may have stepped back in and bought more OR, he may have taken a position as a bondholder ....which is his preferred M/O.

Obviously he finally realized that there is really no value to be had in the airline industry

Thanks