Warren Buffett, one of the world's richest men, said his company, Berkshire Hathaway, had sold all its shares in the four largest US airlines. Buffett also said he had made a mistake in investing in the airline.
Speaking at a virtualized annual meeting with shareholders on Saturday, Buffett said the world had 'changed' because of the coronavirus.
Berkshire Hathaway has lost a record 5 trillion in the first three months of this year. The company released this information yesterday. After a while, Buffett made that comment. This information was given in a report on BBC online.
Berkshire Hathaway had an 11 percent stake in Delta Airlines, 10 percent in American Airlines, 10 percent in Southwest Airlines, and 9 percent in United Airlines, according to the annual report and company files.
Although the company has been avoiding the aviation industry for years, it started investing in four airlines in 2016.
"We have made this decision in terms of the aviation business," Buffett said at the meeting. We basically got the money out of this business even after a substantial loss. But we will not fund any organization ... where we understand that it will only waste our money in the future. '
Buffett also said he was thinking of investing in more airlines before the epidemic hit. He said it was a push to reduce demand. Due to the coronavirus, air traffic in the country is now completely closed.
The US travel industry has collapsed in the wake of the coronavirus epidemic. Airlines have canceled millions of flights. Many have dropped out of business.