Home Airplanes Warren Buffett reveals 3 major points in his latest investment strategy

Warren Buffett reveals 3 major points in his latest investment strategy

During this ongoing Global pandemic, even the best of investors have felt the heat from the coronavirus bear market, and amidst this dark hour for the stock market, legendary investor Warren Buffett’s quarterly speech comes as a beacon of hope.

Like all his previous 3 month speeches, even this time the CEO of Berkshire showed what the insurance giant has done with its own portfolio and had plenty to say regarding the investing climate

On May 15th, in a filing with the Securities and Exchange Commission, Berkshire revealed details from its recent portfolio.

Most of the information in the filing is not up to date because it is just a snapshot of Berkshire’s holdings as on March 31st, 2020, however, there were three important aspects from Buffets latest move which every stock market investor needs to know

1. Berkshire had actually added to some of its airline positions — right before he sold out

Earlier in the year, at the annual shareholder meeting, Buffett already revealed that Berkshire had sold off its entire position in the four major U.S. airlines. As per the early April filings, Berkshire had sold positions in Southwest Airlines and Delta Air Lines, and as a result, both companies came below the 10% mark at which more immediate disclosure is required.

When asked about the move, Buffett stated that the common thread of keeping positions below 10% was not the only motivation of the sales, rather it was a move that denotes a major change of perception, however, later the Berkshire CEO said, “It turned out I was wrong about the business.”

But in a later filing, it was then revealed that Berkshire sold off its stakes in American Airlines Group and United Airlines Holdings as well.

Although, interestingly as of March 31, Buffett’s holdings of Delta increased in comparison to that at the end of 2019. Even United noticed a slight increase, but American and Southwest faced small declines.

2. Buffett dropped the ax on these two companies, but there was a completely unexpected surprise 

During the first quarter, two major positions were completely sold off by Buffett. Energy company Phillips 66 and Insurance giant Travelers have been removed from Berkshire’s holdings in the first quarter.

However, it is fair to say that every investor saw this coming, as back in the fourth quarter of 2019, Berkshire reduced its position in Travelers by nearly 95%. While an even larger percentage of reduction was seen in Phillips 66 as of Dec. 31, 2019.  It was about time that these transactions completely be overwritten from the books.

Although a big surprise which was rather unexpected was Berkshire’s reduction in position in Goldman Sachs.

Back in September 2019, Berkshire owned 18.4 million shares in Goldman Sachs, however, as of March 31st, Berkshire reported owning only 1.9 million Goldman shares. It can be termed as a decent payday considering Buffett’s opportunistic purchase made during the financial crisis, but we could not help but notice the timing of the big sale as it comes while even out-of-favor rival Wells Fargo escaped with no reductions amongst Berkshire’s holdings.

3. No significant buys

During this current coronavirus bear market, many expert investors had predicted that Buffett would make big investments, however, according to the March 31 report, Berkshire has opted for a rather conservative position. 

The filing also revealed that Berkshire did not go through any major changes in the latest quarter, however, there was one noticeable exception as an added position in PNC Financial Services Group (NYSE:PNC), showed that the investment giant grew its holdings by over 500,000 shares to nearly 9.2 million.

What’s next for Berkshire?

It is no secret that we get just a glimpse at Warren Buffett and his investment decisions in each quarter, and like always his most recent filing has left us questioning our investment strategies more rather than getting some stable answer, but that is the beauty of the stock market. 

The two main topics of focus currently for the Berkshire CEO during this global pandemic situation is that he has bullish sentiments in long-term prospects for the stock market, and the second area of focus is to endure that the insurance mogul is equipped with a surplus capital flow to tackle any outcome that comes from this ongoing coronavirus crisis.

Don’t Miss: Study on Warren Buffett investment strategy and 5 stocks to invest

Safdarali Rizvi
Safdarali Rizvi the management graduate. Has been an avid book reader all his life so naturally loves playing with his words. His curiosity for discovering futuristic opportunities drives him to enlighten the entire Geekymint team with exclusive and intriguing news. He has a real passion for calisthenics and sports. His management abilities and hunger for learning brings tremendous value to our team.


Please enter your comment!
Please enter your name here

Must Read

Ranking The Best Anime Of All Time

Anime is an art form that originally released in Japan. So, Anime mainly refers to animations produced in Japan. However, over the...

10 of the best video games based on anime in 2020

Anime has established itself as a prominent source of entertainment all over the world. The animation characters are naturally very appealing for...

Everything about free sports streaming on Stream2watch

What is Stream2watch?Stream2watch is a website for streaming live sports. It is available on both PC and Mobile....

Ronaldo7.net: Watch live football matches for free

Ask any football fan, each one of them would name Cristiano Ronaldo as a GOAT.  Undoubtedly one of the greatest players ever...

The best games like Wizard101 for MMORPG lovers

Wizard 101 is a multiplayer online role-playing game that released on September 2nd, 2008. Since then, there are many games like Wizard101...


ThopTV – Download & install app Apk on Android, iPhone, iPad, iOS, MAC, PC, Firestick, FireTV

About ThopTV movies ThopTV has been around for many years, initially, a user could download the app for an Android Device directly through play store....

Cyberflix TV 3.2.0 – Download & install app Apk on Android, iPhone, iPad, iOS, MAC, PC & Firestick

About CyberFlix TV CyberFlix TV is an online streaming app on which you can watch free movies and TV Shows. The app has been shut...

9 best ThopTV alternatives for free streaming and Live TV

Streaming apps like Netflix, Amazon Prime, Hulu etc have all become a household name, thus proving that the Internet is the new...

Stock market expert Marc Faber makes his first investment in BTC

In what could be a significant uplift for the most famous digital asset, Bitcoin (BTC), earlier in the week, one certain Marc Faber announced...

Kissanime|Download Kissanime App Apk on Android, iPhone, iPad, iOS, MAC, PC, Firestick, Roku

What is kissanime Kissanime is a free anime streaming website if you ask any anime lover about the best website to watch the latest anime...