Sunday, May 03, 2020

New KCI Doomed Part Deux: Buffett Dumps Airline Stocks Amid Industry Crash

Special thanks to TKC readers for sending this fact check which might offer a hint that people with REAL MONEY know better than so many online bloggers, consultants, pundits and keyboard warriors. Checkit:

Buffett says he dumped entire stake in airline-sector stocks: 'I just decided that I'd made a mistake...The world changed for airlines' amid coronavirus

Warren Buffett says Berkshire Hathaway dumped all of its holdings in the airline sector, painting a grim picture of the industry that has been badly hurt by the COVID-19 pandemic. "I was wrong about that business," Buffett said, speaking on Saturday in Omaha, Neb., at Berkshire's annual shareholder meeting, which was held virtually due to the deadly disease.

21 comments:

Anonymous said...

People will fly regardless of the name on the airlines. No indication the current major carriers wont continue. The success of the airlines isn't contingent on the success of the current investors in the airlines. Kansas City MO is isn't own worst enemy. The other area airports actually have support of the community and the leaders in the community.

Anonymous said...

No indication anything at all will change so long as leaders continue to throw money at failure. Those aren't leaders of the community. They are corporate sell outs pushing old world bubbles.

Anonymous said...

sorry, it's hard to see flying getting back to 2019 levels almost ever. that was a frenetic, roaring twenties style year in all respects, the good times were rolling.

even if and when the short-term fear abates, people have learned new ways of doing things that will endure.

zoom-type technology will get better and better and supplant a portion of business travel forever.

Anonymous said...

Buffett made a fortune in 2008 / 2009 investing in Goldman Sachs, GE etc because Buffety had insider information from the Obama administration and knew which companies would be bailed out.

Goldman Sachs was one such company that was bailed out by taxpayers. In fact Treasury Secretary Paulsen contacted Buffett on multiple occassions.

Apparently Buffett lacks the same insider information and got burned big=time by investing in airline stocks or he has inside info the government is going to let them go bankrupt. Either way, Buffett's selling of the airlines suggests they are going bankrupt.

Anonymous said...

A leading airline stock analyst lowered his price target on a major airline to $1. Another withdrew any price target whatsoever.

It'll be interesting to see how Buffet's comments affect the opening.

Anonymous said...

So, if the airlines as reconstituted in two years can't pay full price for KCI, who will pay?

And, if it's the taxpayers, won't that contribute to a downward spiral in local finances?

Scary stuff.

Anonymous said...

The Hotel industry has to be hanging on by a thread as well. Wonder how Hilton, Holiday Inn, Comfort Inns etc finances look.

Anonymous said...

If the new KCI terminal continues, can it be adapted to a design that

(1) improves hygiene any way possible and

(2) allows for continuing operation economically at one-third or one-half capacity in case corona lasts years?

Anonymous said...

Well, with its spread out design, old KCI might be better adapted to a social distancing scenario.

Reality Speaker said...

Haven't been on here for awhile.

I see the comment format has reverted to the "old" style.

Sad.

I noted fewer ad hominem trolls on the revised format.

Probably fewer bs comments led to fewer posts, so (again, sadly) back to square one.

Anonymous said...

Airports should never be more than butler buildings with baggage checks and parking. You arrive to see and visit the city, not the airport.

Anonymous said...

Not totally crazy idea: With air travel severely curtailed for the next few years, mothball KCI and return commercial flights to the old downtown airport, the most convenient airport ever.

Hilton, Holiday Inn, Comfort Inns etc said...

Our finances are great. Thanks for asking.

Anonymous said...

Sweden didn't curtail flights and built new airports and nobody's sick there.

Anonymous said...

If you dont fly a plane each day it requires huge additional maintenance costs. Its going to cost literally billions to get the planes flying again. Al wiring mush be check for mice damage. tanks purged. Tires changed due to flat spots. Dont ever buy an airline stock no matter how cheap.

Anonymous said...

Yes, let's return to the downtown airport where modern jets can't even land because the runways are too short; another brilliant TKC comment.

Anonymous said...

Yes! on moving the fewer flights to Wheeler Downtown for the years until flying becomes safe and popular again after a vaccine is invented.

Close down old KCI and stretch out work on the new terminal.


Anonymous said...

737s were very at home flying in and out of Wheeler, as were L1011s and DC10s, a lot bigger. Air Force One 747 sometimes uses Wheeler, but you don't want to be playing golf when it does!

Anonymous said...

It would be an honor for Mayor Wheeler if the downtown airport were to return as Kansas City's main airport, even if there are only ten or twenty flights a day during the epidemic.

Anonymous said...

Buffet sells liberals a dream of idolizing a Faux God. An example of his fake double tongue world, Pretends to hate pipelines, invest and owns heavily in them. Liberals pray and fail to investigate.

Anonymous said...

The airport authority has little credit or support from the citizenry due to their shady and underhanded tactics during the push for a new KCI. They purposefully deferred necessary maintenance to make the facilities appear run-down. They purposefully put the two largest carriers by volume (Delta and Southwest) next to each other in Terminal B to increase crowding. They purposefully mothballed Terminal A to increase traffic congestion in the other two and make the difference in gate count between the old KCI and new KCI seem less noticable (90 vs 35). Everything they did was shady, why trust anything they do or say now?