Warren Buffett says Berkshire sold its entire position in airlines because of the coronavirus.
Warren Buffett says he was “wrong” on investments in the airline industry. Buffett added that airlines have “too many planes” because people will likely not travel as much as they did in the next 3 to 4 years as they did before COVID-19.
Warren Buffett said he made an “understandable mistake” when valuing the airline stocks as a near-global halt in travel due to the coronavirus sent their prices sharply lower.
“When we bought [airlines], we were getting an attractive amount for our money when investing across the airlines,” he said. “It turned out I was wrong about that business because of something that was not in any way the fault of four excellent CEOs. Believe me. No joy of being a CEO of an airline.”