Warren Buffett announced in its 1Q20 briefing that the conglomerate, in a stunning move, has sold all its airline stakes in the current quarter, worth slightly north of US$4bn as of end-2019. This was a massive U-turn from just a couple of months back in February where Buffett stated he will not be selling any of his airline stocks.

However, there were telling signs that Buffett might have lost faith in the airlines when he started paring his Delta and Southwest Airlines stakes back in late March.

I did a video as to the possible reasons why Buffett has sold his airline stakes, with my key conclusion being that he made a mistake and is now cutting his losses short.

This was confirmed in the latest Berkshire briefing where he admitted that he made a mistake in investing in airlines “again” and is now exiting all