Post #4630 by DTB on the US Policy board

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He was a net seller in 2020, however that was a once in a century pandemic and predominantly airline stocks when international travel was restricted, no brainer?

I'm not sure in what sense that decision was a 'no brainer', but it reminds me of a famous investor's aphorism, who said it was good for investors to "to be fearful when others are greedy and to be greedy only when others are fearful."

But in this case, selling the airlines has not worked out so badly - ignoring dividends, the 4 big airlines are almost flat from their nadir at the end of March (LUV down a lot, AAL down a bit, DAL and UAL up about 20%, whereas the S&P is up 74%. I think Buffett was probably fearful, but not for exactly the right reason - in the end, it's not the infectious disease that has really hurt airline profits, it's the discovery that a lot of business travel was unnecessary.

dtb

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