Sunday, July 19, 2020

They Must Be Reading The Blog -- July 19, 2020

Ever since the "story" broke, I've been posting updates every so often. From July 11, 2020:
Buffett And The Airline Stock He Sold

Back on March 23, 2020, a senior analyst for some firm said that Warren Buffett panicked when he sold his airlines. That analyst did not know a basic rule of investing. LOL.

So, where does Berkshire Hathaway stand today if Warren Buffett re-invested all proceeds from the four airlines he sold, back into AAPL:
 
Airline
Shr Price: 3/31/2020
Dollars: 3/31/2020
Shares
Shr Price: July 10, 2020
Total: July 10, 2020
DAL
28.53
675,000,000
23,659,306
27.09
640,930,599
UAL
31.55
675,000,000
21,394,612
32.67
698,961,965
AAL
12.19
675,000,000
55,373,257
11.94
661,156,686
SWA (LUV)
35.61
675,000,000
18,955,350
33.22
629,696,714
2,700,000,000
2,630,745,965
AAPL
254.29
2,700,000,000
10,617,799
383.68
4,073,836,958
1,443,090,993
2,630,745,965
54.85%
March 24, 2020
224
10,617,799
2,378,386,881
July 10, 2020
383.68
10,617,799
4,073,836,958
1,695,450,077

Hypothetical numbers:
  • on/about March 31, 2020, proceeds from sale of the four airlines: $2.7 billion
  • July 11, 2020, those four holdings would be worth: $2.63 billion
  • had Buffett taken that $2.7 billion and purchased $2.7 billion of AAPL shares back in March, they would be worth $4.074 billion, a 51% increase in value vs a further loss in the value of those airline stocks.
Now, this from Fox Business:


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