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Source: Reuters
Billionaire Warren Buffett, president of the Berkshire Hathaway Foundation, said at the foundation’s annual meeting on Saturday that he had sold his entire stake in the four largest US airlines.
At the end of 2019, the corporation had significant airline interests, including 11% in Delta Airlines, 10% in American Airlines, approximately 10% in Southwest Airlines, and 9% in United Airlines, according to its annual and disclosure reports. .
Airline stocks were strongly affected by a collapse in travel demand in the United States amid the Corona virus pandemic.
And American airlines canceled hundreds of thousands of flights after demand for travel in the United States decreased by about 95%, and there is no clear timetable for flights back to pre-crisis levels.
Buffett said that the expectations of the aviation industry changed dramatically in just a few months.
“We made this decision with respect to the airlines. We withdraw money fundamentally even with a great loss … We will not finance a company that we believe will devour money in the future,” he added.
Buffett said Berkshire had invested about $ 7 billion, or $ 8 billion, in the airline’s four shares.
“We didn’t get anything like 7 or 8 billion dollars and that was my mistake … I was the one who made the decision,” he said.
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