401 G.C. QUICK EXCERPT, (Tues. May 5th, 2020) – Mr. Buffett reported that he sold his entire stake in four airlines, and talked about problems in that sector, energy, and small businesses, too. While he sounded optimistic notes and waxed about “American magic,” he also conceded that he didn’t see any attractive investments right now.
“For him to come out and say ‘I don’t see any opportunities’ is a big thing,” said Greg Harmon, founder and president of Dragonfly Capital. “It’s clear to him that it’s not time for everything to start going up.”
The airlines Mr. Buffett sold were all down on Monday. Delta Air Lines declined 6.4% to $22.57, United Airlines Holdings slid 5.1% to $25.26 and American Airlines Group fell 7.7% to 9.82. Southwest Airlines also slipped 5.7% to 27.56.
“What [Mr. Buffett] said is entirely reasonable,” said Robert Colby, chairman of Robert W. Colby Asset Management. “He’s keeping his cash hoard, and so am I.” Mr. Colby, who earlier advised his clients to get out of stocks, said he sees no good reason to buy equities right now.
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Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com