Notices
Major Legacy, National, and LCC

What will Buffet buy?

Old 04-03-2020, 06:22 PM
  #41  
Gets Weekends Off
 
Joined APC: Aug 2015
Position: Captain
Posts: 1,550
Default

Originally Posted by Andy View Post
If anyone thought that airlines were going to recover quickly, this should be your indication that they won't . Buffett probably sold for a loss.

50 percent loss since he bought those 13 million around 40 some
check it out
it was reported
Sniper66 is offline  
Old 04-03-2020, 07:54 PM
  #42  
Don't say Guppy
 
Joined APC: Dec 2010
Position: Guppy driver
Posts: 1,926
Default

I was surprised when he bought the stock, frankly. He bought most of it late in an economic cycle, in an industry where the magnitude of the cycle is 3-5 times the underlying economy. He also bought DAL, which like AAL and UAL, spent the vast majority of their free cash flow on stock buybacks, which he publicly derides companies for doing.

Dumbest thing I have ever seen him do. Maybe the only dumb thing.

If this shutdown lasts much longer, it will take 18-24 months for air travel to recover. Air travel never bounces right back. 1/3 of the population won't have money to travel, and another 20% (retirees) won't want to get on an airplane until they get vaccinated.
Probe is offline  
Old 04-03-2020, 08:18 PM
  #43  
Gets Weekends Off
 
Joined APC: Mar 2006
Position: guppy CA
Posts: 5,133
Default

Originally Posted by Probe View Post
Dumbest thing I have ever seen him do. Maybe the only dumb thing.
You don't remember him buying a big chunk of USAir.
Andy is offline  
Old 04-03-2020, 09:10 PM
  #44  
Gets Weekends Off
 
Joined APC: Dec 2011
Position: A320 FO
Posts: 843
Default

Originally Posted by Probe View Post
I was surprised when he bought the stock, frankly. He bought most of it late in an economic cycle, in an industry where the magnitude of the cycle is 3-5 times the underlying economy. He also bought DAL, which like AAL and UAL, spent the vast majority of their free cash flow on stock buybacks, which he publicly derides companies for doing.

Dumbest thing I have ever seen him do. Maybe the only dumb thing.

If this shutdown lasts much longer, it will take 18-24 months for air travel to recover. Air travel never bounces right back. 1/3 of the population won't have money to travel, and another 20% (retirees) won't want to get on an airplane until they get vaccinated.
He publicly derides many things that make his companies money(derivatives for one). He has spent a lifetime cultivating his humble, folksy airs but he’s just as hypocritical and ruthless as any other ‘titan of industry.’
tallpilot is offline  
Old 04-04-2020, 08:31 AM
  #45  
Gets Weekends Off
 
Joined APC: Jul 2017
Posts: 1,729
Default

Warren Buffett’s Berkshire Hathaway sells part of Delta, Southwest airline stakes

KEY POINTS
  • According to regulatory filings, Berkshire sold nearly 13 million Delta shares for about $314 million and roughly 2.3 million Southwest shares for about $74 million.
  • The sales were conducted on Wednesday and Thursday, the filings show.
  • Berkshire previously owned about 11.1% of Delta stock and 10.4% of Southwest stock, according to Refinitiv data. “
  • No reasons for the sales were given.
havick206 is offline  
Old 04-04-2020, 08:45 AM
  #46  
Gets Weekends Off
 
Joined APC: Nov 2019
Posts: 1,256
Default

Don't think he is buying anything airline related anytime soon. He tends to pick companies he can make money on...
senecacaptain is offline  
Old 04-04-2020, 09:33 AM
  #47  
Gets Weekends Off
 
Joined APC: Dec 2017
Position: Retired NJA & AA
Posts: 1,907
Default

Originally Posted by Probe View Post
I was surprised when he bought the stock, frankly. He bought most of it late in an economic cycle, in an industry where the magnitude of the cycle is 3-5 times the underlying economy. He also bought DAL, which like AAL and UAL, spent the vast majority of their free cash flow on stock buybacks, which he publicly derides companies for doing.

Dumbest thing I have ever seen him do. Maybe the only dumb thing.

If this shutdown lasts much longer, it will take 18-24 months for air travel to recover. Air travel never bounces right back. 1/3 of the population won't have money to travel, and another 20% (retirees) won't want to get on an airplane until they get vaccinated.
Article from Forbes saying consensus is pax traffic not back to 2019 levels until 2023:

https://www.forbes.com/sites/jeremyb.../#6daf1fe8fa37

Adam Pilarski, a consultant with Avitas who has warned for years that airlines were ordering too many planes during the boom times of the last decade, expects that airline traffic won’t return to 2019 levels until 2023, a forecast in line with many other observers.
AirBear is offline  
Old 04-04-2020, 10:30 AM
  #48  
Gets Weekends Off
 
Joined APC: Jul 2018
Posts: 145
Default

Originally Posted by AirBear View Post
Article from Forbes saying consensus is pax traffic not back to 2019 levels until 2023:

https://www.forbes.com/sites/jeremyb.../#6daf1fe8fa37

Adam Pilarski, a consultant with Avitas who has warned for years that airlines were ordering too many planes during the boom times of the last decade, expects that airline traffic won’t return to 2019 levels until 2023, a forecast in line with many other observers.
Yeah they were drinking the Boeing koolaid. Their global growth projections were beyond naive and overly optimistic. They assumed no economic fallout at any point in time over the next 20 years.
305808 is offline  
Old 04-04-2020, 10:44 AM
  #49  
Gets Weekends Off
 
Joined APC: Jul 2017
Posts: 1,729
Default

Originally Posted by senecacaptain View Post
Don't think he is buying anything airline related anytime soon. He tends to pick companies he can make money on...
Yes and dumping stock and locking in his losses are very telling of what his crystal ball is telling him, especially given the fact he’s probably the best person to ride this out.
havick206 is offline  
Old 04-04-2020, 10:58 AM
  #50  
Gets Weekends Off
 
C17B74's Avatar
 
Joined APC: May 2013
Position: No Hats No Jackets No PAX
Posts: 1,451
Default

Maybe time to start converting the 737 Max to freighters and other hulls that may not see use for a few years that are closer to their end life. Give $ back to the pax carriers and sell’m cheap to the cargo industry. Granted, the former NWA guys are probably screaming now is the time to bring cargo back. I know nothing, just spitballing.
C17B74 is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Thread Tools
Search this Thread
Your Privacy Choices