Скачать или смотреть Warren Buffet 2020 vs 2008 | Why Is Berkshire Hathaway Selling?

“Be fearful when others are greedy and greedy when others are fearful.”

Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) has gone from buyer to seller on airline stocks, selling nearly 13 million shares of Delta Air Lines (NYSE:DAL) and 2.3 million shares of Southwest Airlines (NYSE:LUV) in recent days. Airline stocks have been among the hardest hit by the COVID-19 coronavirus pandemic-related sell-off, with shares of Delta and Southwest down 52% and 36%, respectively, in the last month alone. But the sale by Warren Buffett's Berkshire is still surprising, considering the company was buying Delta shares just one month ago. Berkshire Hathaway had to disclose the sales because it owned more than 10% of each airline. We won't know until May whether Berkshire was also selling its stake in two other airlines, United Airlines Holdings (NASDAQ:UAL) or American Airlines Group (NASDAQ:AAL), or whether Buffett and his co-advisors intend to continue to pare their Delta and Southwest stakes in the days and weeks to come. Berkshire Hathaway's sale if nothing else could be interpreted as a sign that the brain trust in Omaha are worried that we are headed into a severe downturn. If you believe there is a real chance of a quick rebound these airlines are significantly undervalued -- Delta for example is trading at 3 times trailing earnings and 0.3 times sales -- and now is the worst possible time to sell. It seems clear that Berkshire is assuming that won't be the case.

Warren Buffett's Berkshire Hathaway sold about $30 million worth of Bank of New York Mellon stock in April 2020, according to a SEC filing published on Friday. The famed investor's conglomerate disposed of almost 860,000 BNY Mellon shares for about $35 each, trimming its stake in the bank from roughly 10.4% to 9.8%. It likely wanted to reduce the added regulatory burden that comes with holding a stake of 10% or more. Berkshire's remaining stake in the company is worth about $3.3 billion. BNY Mellon stock has plunged by more than a quarter since the start of the year, reflecting a broader market decline fueled by the novel coronavirus pandemic.

A lot of time has passed since Warren Buffett first bought $5 billion of Bank of America (NYSE:BAC) preferred stock in August 2011. The BAC stock he bought paid 6% interest and was convertible into 700.3 million shares of common shares anytime before September 2021. Berkshire Hathway (NYSE:BRK.A, NYSE:BRK.B) converted the warrants in the third quarter of 2017, using its interest payments from the deal to foot the bill. Buffett’s investment in BAC netted Berkshire approximately $1.8 billion in interest payments over the six years it held the preferred Bank of America stock; the 700 million shares are now worth $18.6 billion.

When Warren Buffett starts buying stocks again, or the US Government turns to Berkshire Hathaway to backstop potential corporate bankruptcies, and they receive sweet deals on low priced stocks... that’s when we will know that this market has reached a bottom. Until then, the tide is going out!

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