Buffett Sells Airline Stock Holdings
Billionaire investor Warren Buffett announced that he has sold all shares of stock in the “big four” US airline companies. Airline stocks have traditionally been seen as solid, reliable investments. So what, if anything, does this divestiture mean for the industry that has been hammered by the COVID-19 pandemic?
Jeffrey Gundlach, a billionaire bond investor, said Warren Buffett's selling of his entire stakes in US airlines corroborates the "economic genie is not going back in the bottle" thesis. A genie not going back into the bottle refers to the idea that once something has changed fundamentally it cannot change back. In this case, the genie likely represents pension funds and institutional investors who seek to protect the interests of millions of regular people and, therefore, steer clear from investments that suddenly seem too risky.