Saturday, August 1, 2020

Buffett -- Berkshire Hathaway -- Airline Stocks -- AAPL -- August 1, 2020

Buffett -- AAPL -- airlines update. Back on March 31, 2020, or thereabouts it was announced that Warren Buffett sold all his airline holdings in his Berkshire Hathaway portfolio. One Yahoo!Finance analyst wrote an article suggesting Buffett had panicked, selling his airline stock at a loss. In fact, that analyst apparently doesn't understand basic investing.

Updating the table below, which I have been doing every so often shows that had Warren Buffett held on to his airlines back on March 31, 2020, instead of selling, those shares would now be worth less than what he sold them for.

The airlines (DAL, UAL, AAL, and SWA):
  • value on day he sold his airline stock: $2.7 billion
  • most recent values of these airlines: $2.464 billion
Had he taken that $2.7 billion and bought AAPL:
  • value of $2.7 billion of newly purchased AAPL on March 31, 2020: $2.7 billion
  • most recent value of AAPL: $4.074 billion
The increase in value is incredible. But more importantly, as of August 1, 2020, would you rather have holdings in AAPL or in the four airlines?


Airline
Shr Price: 3/31/2020
Dollars: 3/31/2020
Shares
Shr Price: July 31, 2020
Total: July 31, 2020

DAL
28.53
675,000,000
23,659,306
24.97
590,772,871

UAL
31.55
675,000,000
21,394,612
31.38
671,362,916

AAL
12.19
675,000,000
55,373,257
11.12
615,750,615

SWA (LUV)
35.61
675,000,000
18,955,350
30.89
585,530,750



2,700,000,000


2,463,417,152








AAPL
254.29
2,700,000,000
10,617,799
425.04
4,512,989,107













2,049,571,955




















2,463,417,152






83.20%







March 24, 2020

224

10,617,799

2,378,386,881
July 31, 2020

383.68

10,617,799

4,073,836,958






1,695,450,077

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