The coronavirus bear market has shaken investors to the core, and in times of trouble, many of them turn to legendary investor Warren Buffett for guidance and support. The CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) always has plenty to say about the investing climate, and every three months, investors get a chance to see what the insurance giant has done with its own portfolio.
On May 15, Berkshire revealed some of its recent portfolio moves in a filing with the Securities and Exchange Commission. In several cases, the information the filing contained wasn't actually the most up-to-date, because it represents a snapshot of Berkshire's holdings as of March 31. Nevertheless, there were three important pieces of information that investors gleaned from Buffett's latest moves.
Thanks to Buffett's comments at the annual shareholder meeting, we already knew that Berkshire had sold off its entire position in the four major U.S. airlines. Required filings in early April showed that Berkshire had sold positions in Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV), bringing both of them below the 10% mark at which more immediate disclosure is required. Asked for clarification, Buffett revealed that the sales weren't just motivated by the common thread of keeping positions below 10%. They represented a change of view, with the Berkshire CEO saying, "It turned out I was wrong about the business." Later filings revealed that Berkshire sold off its stakes in United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) as well.