On May 2nd at Berkshire Hathaway’s annual shareholder meeting (also known as Woodstock for Capitalists), in rather dramatic fashion, Warren Buffett announced publicly that Berkshire had unloaded its entire positions of airline stocks. It amounted to a roughly $4 billion fire sale of the leading domestic players – United Airlines, American Airlines, Delta Airlines, and Southwest Airlines.As you know, Mr. Buffett isn’t known for making rash or snap decisions on his holdings. It’s been widely known that his favorite holding period is forever. In Buffett’s mind, this about-face boiled down to a belief that the world had quickly changed for airlines, which have essentially seen demand for air travel evaporate in the face of the coronavirus pandemic.Betting against Warren Buffett on any investment has historically been a very poor decision – despite a rough five-year stretch, Berkshire Hathaway’s average annual return of 20.3% since 1965 has trounced the stock market’s 10%...
