Warren Buffet's Berkshire Hathaway Loses $3 Billion in Airline StocksThe billionaire investor's conglomerate counts Delta, Southwest, United, and American among its 25 biggest holdings, and owns more than 8% of all four companies.
This story originally appeared on业务Insider
Warren Buffett'sBerkshire Hathawaysuffered another blow this week after President Donald Trump announced restrictions on European travel to the US in response to the coronavirus threat, sendingairline stocks into a tailspin.
The famed investor's conglomerate countsDelta Air Lines, Southwest Airlines,United Airlines, andAmerican Airlinesamong its 25 biggest holdings, and the quartet made up about 4% of its portfolio at the end of December. Berkshire owned more than 8% of each of the four companies at the end of December, and together those shares were worth about $10 billion at that time,according to Gurufocus.
However, shares in American and United have more than halved in value since the start of this year, and Delta and Southwest stocks have tumbled by more than 25%, as coronavirus fears continue to weigh on travel demand.
As a result, the value of Berkshire's holdings has dropped by more than a third to about $6.3 billion. If the pandemic continues to plague airline stocks, that loss could grow.
巴菲特不会太担心。他最近声称thatinvestors should celebratethe chance to buy quality stocks at a lower price. Berkshire alsoplowed another $45 million into Delta stock last monthafter it plunged 20% due to coronavirus.
The breakout of an oil-price war between Saudi Arabia, Russia, and other oil producers also promises to boost airlines' profits by slashing their fuel costs. Moreover, the Trump administration has promised to support airlines along with other industries suffering from the coronavirus outbreak.
