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Billionaire investor Warren Buffett doesn’t know how or when the economy will recover of the coronavirus but he remains optimistic about the long-term future of the United States. Buffett explained at the Berkshire Hathaway online annual meeting that there is no way to predict the economic future right nowsince opportunities still vary too muchAP reports.
“We don’t know exactly what happens when you voluntarily exclude a significant part of your community,” because that was never done, Buffett said, he said. It can take several years to understand all the financial consequences. of the coronavirus epidemic, but that doesn’t change its long-term vision because the country has endured wars and depressions before.
It is unclear how long the virus will continue to weigh on the economy.Buffett said. Still said there may be unpleasant surprises of the virus and how people react to it. “We have deal with a lot of unknowns“Buffett said, so companies and investors cannot be sure of what will happen in the near future.
Buffett added that does not expect big banks to have significant financial problems during a viral crisis how are they in much better condition than during the 2008 financial crisis d.
Buffett and the vice president of the company, Greg Abel, discussed the loss of almost $ 50 billion reported on Saturday morning and the large sums of money that the company has. Berkshire has more than $ 137 billion as Buffett tries to find big acquisitions for the company and wants to be prepared to handle any crisis.
Edward Jones analyst Jim Shanahan said he was It is surprising that Buffett did not find any deals to invest at the end of the first quarter.. “The lack of investment activity is really happening.”
Buffett said that the company sold approximately $ 6.5 billion in shares in April. He explained that he had made a mistake in evaluating the airlines, so he did sold all shares of US airlines.
The Berkshire conglomerate had an 11% stake in Delta Air Lines, 10% in American Airlines, 10% in Southwest Airlines and 9% in United Airlines, according to the company’s annual report and written records. The company started investing in all four airlines in 2016 after avoiding the aviation industry for years, reports the BBC.
“We have made this decision regarding the airline business. We make money from business, even with a significant loss. We will not finance a company that … where we think it will chew money in the future. “
Buffett explained that did not make big deals during the coronavirus crisis, seeing none in attractive conditions.
Many companies have managed to borrow money in the past two months.why The Federal Reserve intervenedto keep the markets moving. “The world has changed“because of the coronavirus,” he added.
Warren Buffett’s $ 50 Billion Loss
Due to a large drop in investment values
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