“The airline business — and I may be wrong, and I hope I’m wrong — changed in a major way,” Buffett told his shareholders. Berkshire sold its position in airline stocks for this very reason.
Buffett says people are now discouraged from and scared of flying, so “the world has changed for the airlines.” This is a mentality he believes will last for a long while even after a vaccine is available to the public.
Create a plan for the long-term and stick to it
Warren Buffett shared that he is confident the U.S. economy will bounce back from the COVID-19 crisis.
“Nothing can basically stop America,” he said at the online shareholder meeting. “We haven’t really faced anything that quite resembles this problem, but we faced tougher problems. The American miracle, American magic has always prevailed, and it will do so again.”
But he also warned no one knows what’s going to happen. We cannot predict the future. We can only make educated estimates. He told investors they should brace themselves for a potentially long recovery. He says they’ll get a “fine result” if they hold onto stocks long-term, a promise he has made long before the pandemic and has been right about.
