Warren Buffett

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Warren Buffett Dumps Delta Air Lines, Southwest Airlines As Coronavirus Pandemic Slams Industry

Warren Buffett's Berkshire Hathaway (BRKB) has sold off millions of shares of Delta Air Lines (DAL) and Southwest Airlines (LUV) over the past few days, regulatory filings showed on Friday. That sent Delta stock, Southwest stock and other airline stocks lower after hours.
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https://www.investors.com/news/warr...west-stock-coronavirus/?src=A00220&yptr=yahoo


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I am assuming he sold at a loss. He obviously sees any gov. bailout diluting shares. Just like Cramer said, you don't want to own any cruise or airlines. Especially if the gov. will have an equity stake. But, what about BA? That seems to be doing OK. Won't the gov. have an equity stake in it? I did find this article pertaining to the gov. having an equity stake in BA:

https://www.fool.com/investing/2020/03/24/boeing-ceo-rejects-talk-of-government-equity-stake.aspx

Speaking on Fox Business on Tuesday, Calhoun reiterated his call for federal support, but said he might reject aid if it required selling an equity stake to the government. "If you attach too many things to it, of course you take a different course," Calhoun said.
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RE: Airlines. Insider selling has been rampant since February 28 but every one of them will claim it had nothing to do with market climate.

UAL: Kirby Scott, President. Unloaded $1.024 Million worth of shares on February 28. Then on March 15, he announces this:

We took early, aggressive action because we have been determined to do everything possible to avoid painful steps that affect your paycheck. But, based on the severity of the situation, that no longer appears realistic.

This weekend, we began conversations with our union leadership about how to reduce our payroll expense in a way that minimizes what we know will be painful for all of us. Earlier this evening, we convened a call with Corporate Officers to update them on the severity of the situation and let them know we will be cutting their salary by 50%.
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https://hub.united.com/2020-03-15-a-message-from-oscar-munoz-and-scott-kirby-2645495847.html
 
From early March DAL filings. So yeah, it appears he lost around 50%. I wonder how many people plowed their savings into these sinkholes after seeing he started buying airlines in 2016 and I wonder how much of their 'bump' was due to him putting a stake in them.

Berkshire acquired more than 976,000 shares for about $45.3 million, or an average price of $46.40, according to a filing Monday.
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https://www.thestreet.com/investing/warren-buffett-berkshire-hathaway-delta-air-lines
 
Speculation on the part of the author who, ironically, holds BRK.B shares. I'd rather see the old man making take some big equity stakes in other equities.

Based on SEC filings, Warren Buffett may have bought back $5 billion in Berkshire stock.

In the past, Buffett has said he would be willing to buy back shares, provided they traded at a compelling discount to the market. He initially set a metric of 1.1 times the company’s book value, subsequently raised it to 1.2, and ultimately revised it to the vaguely-defined “below intrinsic value.”

This strict policy has resulted in a few small buybacks over the years, most notably in 2012 and 2018.

We still don’t know with absolute certainty if Berkshire repurchased the “missing” $5 billion worth of shares. If it did, the firm waited for a reasonably attractive valuation – and a time when the worst of the pandemic uncertainty had passed.
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https://www.ccn.com/berkshires-rumored-5-billion-trade-is-classic-warren-buffett/
 
See SEC Form 4's in previous posts.

Time for sector rotation from tech to financials? These transactions aren't blind. I wouldn't be surprised if there are favorable terms in the new unemployment 'deal' for large banks.

Warren Buffett’s Berkshire Hathaway Inc has spent $2.07 billion on Bank of America Corp shares since mid-July, after winning regulatory permission to increase what was already its largest common stock holding other than Apple Inc
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https://www.reuters.com/article/us-...k-since-mid-july-has-11-9-stake-idUSKCN2512AW
 
Wonder what they see in BAC as opposed to GS? Probably the 1MDB scandal for one.

Big reason for the gains in Berkshire overall are the aggressive stock buybacks which nobody ever seems to criticize.

Berkshire has been an active seller in some significant stock holdings during the pandemic. Berkshire sold out of all of its airline holdings and more recently, disclosed that it had slashed the bulk of its holdings in Goldman Sachs Group Inc. The firm has been buying shares of Bank of America Corp., according to regulatory filings.

Berkshire increased its buyback plan in the quarter, adding about $5 billion of its stock. It purchased $1.74 billion in Berkshire stock a quarter ago. Berkshire went years without buying back its stock. Mr. Buffett has long argued that he could better increase shareholder value through investments than through buybacks or dividends.
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https://www.wsj.com/articles/berksh...lts-11596890066?mod=lead_feature_below_a_pos1
 
Interesting to note that in his latest filing from June 30, he cut back on JPM by 60% and WFC by 25%. In August he loaded up on more BAC, but that was after the filing. Completely out of airlines.

Bugs will be drooling over his purchase of $563M of GOLD, that's Barrick Gold. This was his only newly opened position.
 
When It Comes to JPMorgan, Warren Buffett Isn’t Buying the Spin from the Fed and the Street

Warren Buffett, Chairman and CEO of Berkshire Hathaway, is apparently not buying the story that Powell is attempting to sell to the public. According to Berkshire Hathaway’s 13F filing with the Securities and Exchange Commission for the quarter ending June 30, 2020, Buffett dumped 35.5 million shares of JPMorgan Chase or 61.5 percent of his 57.7 million share holding in the bank.

Buffett also dumped the remainder of his position in Goldman Sachs, which amounted to 1.9 million shares. Buffett had already exited 84 percent of his shares of Goldman Sachs in the first quarter of the year.
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https://wallstreetonparade.com/2020...-buying-the-spin-from-the-fed-and-the-street/
 
For the Buffet fans, his latest filing shows he nearly completely unloaded WFC and PNC. Sold 40% of his previously disclosed stake in GOLD (which the bugs were surely hoping he'd have been buying more of), and purchased MRK, ABBV, PFE, BMY, clearly spreading his bets on a vaccine.
 
Warren Buffett's favorite indicator is at a dangerous level, but he just bought these stocks anyway

The “Buffett Indicator” as it’s called in Wall Street circles — which takes the Wilshire 5000 Index (viewed as the total stock market) and divides it by the annual U.S. GDP — is now at a record high amid the latest climb to records in the broader market. In doing the math, the Buffett Indicator stands at about 195.7% — up sharply from 175% or so when applying third quarter GDP data.

The figure is well above the 159.2% seen just before the dot-com bubble.
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https://finance.yahoo.com/news/warr...ust-bought-these-stocks-anyway-115440143.html
 
I heard someone say the Buffet indicator doesn't work anymore and is no longer relevant with the way companies make money today.

I still think it's relevant, but irrational exuberance can last a long time.

Buffet sold out of his PFE position completely. I guess that's considered a sell the news event as we don't really know what the vaccine profits will be for Fizzy.
 
Warren Buffett says Berkshire Hathaway is seeing ‘very substantial inflation’ and raising prices
PUBLISHED MON, MAY 3 20219:06 AM EDT

“We are seeing very substantial inflation,” Warren Buffett said at the conglomerate’s annual shareholder meeting Saturday. “We are raising prices. People are raising prices to us and it’s being accepted.”

Berkshire Hathaway owns one of the nation’s largest homebuilders Clayton Homes, along with companies such as Benjamin Moore paints and Shaw flooring.

Inflation has begun to accelerate recently due to multiple factors, including increasing demand and struggles with some areas of the supply chain, as well as just easier comparisons with the pace of a year ago.
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https://www.cnbc.com/2021/05/03/war...substantial-inflation-and-raising-prices.html
 
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