Billionaire investor Warren Buffett has said that his company Berkshire Hathaway has sold all its shares in four of America’s largest airlines.
At the annual meeting of shareholders, Buffett said that due to the Corona virus “there have been many major changes in the world”.
Due to the Corona epidemic, the meeting went online this year. At the meeting, Buffett said that his decision to invest in the airline industry was wrong.
Just before Buffett’s statement, his company Berkshire Hathaway announced a record $ 50 billion loss in the first quarter, according to Reuters news agency.
According to the company’s annual report and company filing, Warren Buffett had invested in four major airline companies in the United States. He held 11% in Delta Airlines, 10% in American Airlines, 10% in Southwest Airlines and 9% in United Airlines.
The company started investing in airline companies from the year 2016.
What did Warren Buffett say?
At the meeting, Warren Buffett said, “It has been decided in view of the condition of the airline business. Despite the losses, we have pulled out all our investment from this business.”
“We will not invest in such a company … where we feel that all our money may sink in the future.”
America’s travel industry has been badly affected due to Corona virus epidemic. Airline companies have had to cancel thousands of flights and thousands of aircraft are away from the flight bars.
Buffett has said that before the epidemic he had an idea of investing more in the airline industry.
He said, “Demand has run out and this is a big setback. The air travel industry in this country has been completely closed.”
Delta Airlines said in a statement that “We respect Warren Buffett and the entire Berkshire team and he knew it.
The company has said that they have “complete confidence” in the company’s strength.