I don’t really see the problem selling airlines here. The information has changed. In a pure capitalist system equity would go to zero and workers would get laid off en masse. His preferred holding period might be forever but it’s probably not in his shareholders best ...1/
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Interest for him to wait around and see if they go to Zero. The government will probably bail out equity but to what effect on terminal value? I don’t really get fintwit’s pearl clutching on thispic.twitter.com/1YHBmgWPfs
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I would be curious to know if he is selling other holdings though. My theory is he is selling airlines bc he doesn’t want to be involved in “the government bailed out one of the worlds richest men” situation with the government backstopping that specific industry so aggressively
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I doubt it. Buffett has seemed agnostic to getting bailed out by government policy in the past. If he suspected sufficient government aid was coming to buoy the equity price, I believe he would stick around and cash in.
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Do you mean in his PA or the Berkshire public holdings?
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So just make it like the casinos, where anyone with the skills to beat the house can't play.
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