Coronavirus outbreak has affected everyone, including large companies also. Oracle of Omaha Warren Buffett also seemed to be tense about the current situation. In a recent Berkshire Hathaway annual general meeting, Warren told investors what he thinks about the current situation. Even though his answers were not direct, the actions taken by Berkshire Hathaway tells a lot about the market conditions. The Buffet always tells about being positive in the market by buying stocks during hard times. However, this time it’s reversed because he has sold the majority of the airline stocks, which are worth billions of dollars.
Since the pandemic situation happened, airline stocks aren’t performing well, and that’s creating a vast number of problems for big companies to sustain. Another big thing that is worrying Buffet is the uncertainty about the upcoming situation. Many things are uncertain, including the reopening of the economy. Even though the government favors reopening the economy, people are still afraid of going out. Warren Buffet is famous for buying undervalued stocks, and the reason why the Buffet hasn’t made any investment is shocking everyone.
Buffet seems to be waiting for some time to buy the right stock since currently they are quite overvalued, and that’s why Berkshire Hathaway is trying to avoid buying it. Some market experts say Buffet is waiting because they have made some mistakes of buying too early in the last crisis of 2008. The investment made in Bank of America has benefited a lot from Buffet, and now he is waiting for the same thing. Being optimistic about the market, Warren invests very cautiously. Still, the market conditions are not quite volatile for big investors like Buffet, impacting the overall market. Now how the government is going to handle the reopening of the economy is what investors are curious most about.
Leave a Reply