Warren Buffett dumps entire airline holdings

[Rawhide2 1,346]

More by luck than judgement I'm not holding any airline stock but there could be a bloodbath tomorrow for the likes of Ryaniar Easyjet IAG etc

Just staggering having offloaded the lot....

https://www.theguardian.com/world/2020/may/03/warren-buffett-dumps-us-airline-stocks-saying-world-has-changed-after-covid-19

[midlifecrisis 4,048]

2 hours ago, Rawhide2 said:

More by luck than judgement I'm not holding any airline stock but there could be a bloodbath tomorrow for the likes of Ryaniar Easyjet IAG etc

Just staggering having offloaded the lot....

https://www.theguardian.com/world/2020/may/03/warren-buffett-dumps-us-airline-stocks-saying-world-has-changed-after-covid-19

I'm surprised it took Buffett this long.

[Butch 3,456]

Oooof That's going to hurt in the morning.

He's probably taken a bit of a hit on his airline holdings as well.

[beerboy 40]

Got rid of my BA [ now part of IAG ] years ago having gotinitially stung by the Gulf war crisis and needed to wait years just to break even.

[Evil Penevil 7,628]

Henry Ford used  "dump" tactics to increase his holdings of shares in the Ford Motor Co. In 1918, he led minority shareholders to believe he had turned over Ford to his son Edsel, in whom investors had little faith. Henry also founded a new company and made a show of taking his top employees with him.  Share prices in the old Ford Co. fell as investors scurried to get out before their shares became worthless.  The ruse worked and Henry got almost total control of Ford through no cost to himself. 

Later in his career,  he used similar tactics to generate profits on his shareholdings.  He would sell large chunks of his shares when they were trading at highs, then deliberately create situations that accelerated the fall of Ford share prices.  He once checked himself into a hospital and planted false information in the media that he had suffered a heart attack.  Share prices plummeted in response, and he restored his former holdings at bargain prices, racking up substantial profits on the difference between the price at which he sold and the price at which he bought the shares back.

That sort of market manipulation is now supposed to be illegal, but it is hard to prove in the case of an investor like Buffet who isn't involved directly in a corporation's operations. There's a strong tendency for investors to "piggyback" on whatever Buffet does because they assume he has inside information.

Evil

[Rawhide2 1,346]

Surprisingly at the moment Easyjet is only 5% down albeit its less than a third of its SP of 2 months ago

For a recovery stock its a licence to print money over the longer term will see where we are Monday of next week after more USA economic data landing