Thoughts Why Warren Buffett Sold Delta & Southwest Stock?

welovesrqfl's picture
Rank: Baboon | 122

https://www.cnbc.com/2020/04/03/warren-buffetts-be...
Seems like a strange move to me...I thought he should know better and buy more when others are fearful (especially with a $160BN+ cash stockpile at Berkshire Hathaway). Why do you guys think he sold? Tax loss harvesting? Portfolio rebalancing?

Comments (4)

  • Analyst 2 in IB-M&A
Apr 3, 2020

"Seems like a strange move to me...I thought he should know better and buy more when others are fearful "

Ah yes welovesrqfl please tell us how you know more than Warren Buffet and the billions you have made

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  • Incoming Analyst in IB - Ind
Apr 3, 2020

Might have to do with the fact revenue is projected to be down 90% due to a global pandemic. Just a thought

Apr 3, 2020

Maybe he thinks the probability of bankruptcy is too high to risk owning the equity right now. Could end up being a situation like GM in 2009 when the bankruptcy and bailout wiped out the equity. If that happens with the airlines maybe he could come in for a huge piece of pref post bankruptcy/restructuring.

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  • Intern in IB-M&A
Apr 3, 2020
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