Air Canada T.AC

Buffet Sells ENTIRE airline positions

[logicandinertia]

Buffet has sold out of all his positions in the US Airlines, as announced at the Berkshire Hathaway meeting today.  Whether you are bullish or bearish, no doubting this will make refinancing debt harder for airlines, not easier...

 

“The airline business has the problem that if the business comes back 70% or 80%, the aircraft don't disappear. So you've got -  you've got too many planes....I just made a mistake" - Warren Buffet May 2,2020

[airlineinvestor]

LogicandIntertia   Not sure if you posted this on the Air Canada board in error since it involves the U.S. airlines and Buffett’s investment in them.  I follow the U.S. industry and can assist in helping you gain a better understanding of what has been happening with our Southern neighbours.   First of all, Buffett’s decision to sell his shares in the four airlines needs to be

[RickHunter]

Warren buffet change is opinion on airlines. He buy 1 millions shares of different airlines somewhere at the middle of march and he sold all in the end of april with some gain in is new shares. If Buffet dont think anymore airlines are good investments for the time being its shouldnt be for anyone. Air traffic low for 2-3 years. People with less money to travel and fear of others waves of corona

[Jessuzo]

Lol... hey, all your saying is correct and you know your stuff I'm not arguing on that. Thing is, market doesn't really care about whats rational or not. If buffet is selling, i'm selling. If buffet isn't bullish on airlines (american or not), well it means theres a damn good reason for it! Even though air canada is not in the same financial situation as the american airlines

[filoux004]

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[fraudhunter]

Yea, LOL, Buffet didn’t sell AC. LOL

[R013013C]

  That won't matter, people are just going to sell because of his opinion on airlines. He has that much influence on the market and nothing has been rational so far.

[logicandinertia]

AirlineInvestor, It is nice to see somebody so passionate and an ardent supporter of our airline sector.  I'm sure you have done well on AC over the past few years and playing with the house's money so to speak.  A couple of additional comments: (1) during a recession and/or black swan event, risk scenarios typically change and risk can become asymmetrical.   What does

[jjwilson]

logicandinertia; Thank you, excellent analysis. A few small chipshots from the side if I may;  Management will likely be able to renegotiate, on favourable terms, any aircraft leases since the lessors really don't want their aircraft back in a market glut.  This may be offset by the reduced cash that can be realized from owned aircraft.  Boeing may be in a postion to further

[logicandinertia]

All real possibilities.  Thanks for the points. Cheers.

[fraudhunter]

Looks like some people want to push this post out of sight. Wonder why? 

[OnTheBalance]

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[whatyouthink]

OTB, where will see the new owner's names ? Thx.

[OnTheBalance]

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