Berkshire Hathaway Holding Sold Off Its Shares Of US Airlines
Berkshire Hathaway sold off all its shares in US air carriers because of the pandemic. This announcement appeared on Saturday during a conference call with investors by entrepreneur Warren Buffett, who is the head of the conglomerate.
"The world has changed for the airlines. And I don’t know how it’s changed and I hope it corrects itself in a reasonably prompt way," he declared in the interview to CNBC.
The value of these bonds was estimated at approx. $4 billion. The asset included shares of United Airlines, Delta Airlines, American Airlines, and Southwest Airlines.
"I think there are certain industries, and unfortunately, I think that the airline industry, among others, that are really hurt by a forced shutdown by events that are far beyond our control," he concluded.
On Saturday, Berkshire Hathaway's corporate reporting for the first quarter of 2020 was presented. At the end of the period that concluded March 31, Berkshire Hathaway's net losses were $49.7 billion. For the same period last year, the company's profit was estimated at $21.7 billion. As CNBC noted, Berkshire Hathaway has never previously reported such large losses.
Buffett, according to the latest estimates by Bloomberg, is the fifth richest person in the world. His fortune is estimated at $ 72 billion. Berkshire Hathaway owns large stakes in dozens of companies. These include leading American banks and equipment manufacturers.
The spread of the virus caused serious damage to the US economy and led to a significant decline in the share price of many companies. The situation is particularly difficult for air carriers.