
Warren Buffett says Berkshire sold all its airline stocks due to the coronavirus - tempsy
https://www.cnbc.com/2020/05/02/warren-buffett-says-berkshire-sold-its-entire-position-in-airlines-because-of-the-coronavirus.html
======
jjeaff
Is this being greedy when others are fearful or fearful when others are
greedy?

Seems like being fearful when others are fearful. Surely the market swing has
already corrected for the over-valuation. Is this long term thinking on
Berkshire's part? Do they think they know something the market doesn't?

~~~
Daishiman
You can't "correct" and price in a future where there is no certainty
whatsoever.

There is no current model, no ability to predict or reason about to a
sufficient degree of certainty, about the situation in the airline industry.
You can't even talk about risk when the only thing you have here is
essentially a gamble.

This is being reasonable when looking at long-term investments; there is no
useful information to work with.

~~~
jjeaff
Then why isn't the price already zero for all stocks on the market?

Surely the same uncertainty applies to many or most of the companies Berkshire
owns. Why haven't they fully divested their entire portfolio?

Restaurants are closed, why haven't they fully sold off Dairy Queen?

~~~
Daishiman
Selling off an asset also means that you're assuming its value will go down,
which assumes some level of certainty over your position. This is not
necessarily a safe assumption.

~~~
jjeaff
Right. Which leads us back to my original assertion, which was that it seems
rash to be selling off all of your airline stock considering we know so little
right now.

