How would Warren Buffett invest a small sum of money?
Where will Buffett invest the money from the sale of airline shares? Definitely not in bitcoin
Warren Buffett sold nearly $ 400 million in airline shares
Crypto enthusiasts hope the legendary investor will change attitudes towards bitcoin
Until recently, Buffett’s stance on cryptocurrencies remained extremely negative.
The famous investor has been flexible enough to make it clear that his preferences change with the circumstances. However, cryptocurrencies still remain outside of his investment horizons..
Warren Buffett has sold nearly $ 400 million worth of airline shares after previously claiming that the industry would survive the turbulence without losses. Times change.
Berkshire Hathaway has cut investments in Delta and Southwest airlines by 20% and 50%, respectively, for a total of about $ 390 million, according to reports submitted to the Securities and Exchange Commission (SEC). [Business Insider] Coronavirus-related travel restrictions and travel bans in several countries have made air carriers the epicenter of the economic crisis.
Companies have turned to the government for financial help, prompting Buffett to change his mind about their sustainability.
Turn 180 degrees
One month can change a lot. Back in March, Buffett argued that the airlines would not need any assistance. In an interview with Yahoo Finance, he stated:
“I will not sell airline shares”.
Perhaps Southwest scared him off by canceling 1,000+ daily flights. Or maybe he learned about the story when there was only one passenger on the flight from Washington to Boston. Such situations are a signal for an experienced investor..
My story of visiting my mom during the pandemic made the news! Https: //t.co/BuNekpVW0E
– Sheryl Pardo (@spardova) April 1, 2020
To be fair, we note that Buffett did not liquidate the entire portfolio of investments in airlines, but only sharply reduced it. This means that if air carrier shares continue to fall in price, he could get rid of the rest of the.
Bitcoin enthusiasts revived
Cryptocurrency enthusiasts keep hoping to persuade the “wise man of Omaha” to invest in digital coins. Ultimately, if he changed his mind about the airlines, why not change his mind about Bitcoin?.
As Delta and Southwest pound the government’s doorsteps in hopes of bailing out of bankruptcy, bitcoin is steadily recovering..
Over the past three weeks, the value of the first cryptocurrency has risen by almost 100%, while shares are still holding near the lows. In addition, the second quarter is historically more successful for the first cryptocurrency. And considering the upcoming halving, history may repeat itself.
Old school investor
And yet, despite the investment flexibility he has shown, Buffett’s attitude towards Bitcoin will not change. As an old school investor, he is used to investing in companies with a business model that he understands..
Recall that earlier he called bitcoin a poison squared, and in February of this year, after dinner with Justin Sun, the founder of the TRON project, Buffett announced that his opinion on cryptocurrency had not changed..
“Cryptocurrencies have no value and they don’t produce anything.”.
One of Buffett’s main complaints about cryptocurrencies is that no one can send him a check for dividends..
Perhaps his supposed successor – rumored to be Greg Abel or Ajit Jane – will be more progressive in this regard. [CNBC]
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