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How Warren Buffett's airline stocks have performed since Berkshire Hathaway sold them<blockquote>自伯克希尔哈撒韦公司出售沃伦·巴菲特的航空股票以来，它们的表现如何</blockquote>

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{"i18n":{"language":"zh_CN"},"detailType":1,"isChannel":false,"data":{"magic":2,"id":377511863,"tweetId":"377511863","gmtCreate":1619535016352,"gmtModify":1634211964985,"author":{"id":3570525287776594,"idStr":"3570525287776594","authorId":3570525287776594,"authorIdStr":"3570525287776594","name":"Kelvin27","avatar":"https://static.tigerbbs.com/88a4920af1707aeb14091b74ce7e2771","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":11,"crmLevelSwitch":0,"individualDisplayBadges":[],"wearingBadges":[],"fanSize":2,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"title":"","extraTitle":"","html":"<html><head></head><body>Like and comment me</body></html>","htmlText":"<html><head></head><body>Like and comment me</body></html>","text":"Like and comment me","highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"favoriteSize":0,"link":"https://laohu8.com/post/377511863","repostId":1147181024,"repostType":4,"repost":{"id":"1147181024","kind":"news","pubTimestamp":1619531957,"share":"https://www.laohunote.com/m/news/1147181024?lang=zh_CN&edition=full","pubTime":"2021-04-27 21:59","market":"us","language":"en","title":"How Warren Buffett's airline stocks have performed since Berkshire Hathaway sold them<blockquote>自伯克希尔哈撒韦公司出售沃伦·巴菲特的航空股票以来，它们的表现如何</blockquote>","url":"https://stock-news.laohu8.com/highlight/detail?id=1147181024","media":"Yahoo","summary":"Warren Buffett has a storied history with airline stocks, oncequipping, \"I am Warren and I am an aer","content":"Warren Buffett has a storied history with airline stocks, oncequipping, \"I am Warren and I am an aeroholic.\" But the spectacular returns for the industry over the last year are casting a dark cloud on Berkshire Hathaway's decisionto dump all of its airline holdingsin May 2020 as prices were bottoming. Berkshire loaded up on stock of the four major U.S. carriers in 2016.<blockquote>沃伦·巴菲特 (Warren Buffett) 在航空股方面有着传奇的历史，他曾经说过：“我是沃伦，我是一个航空迷。”但去年该行业的惊人回报给伯克希尔·哈撒韦公司决定在 2020 年 5 月价格触底时出售其所有航空公司股份蒙上了一层乌云。伯克希尔哈撒韦公司在 2016 年增持了美国四大航空公司的股票。</blockquote> At the 2020 Berkshire annual shareholders meeting, Buffett said he'd spent $7 billion to $8 billionamassing stakesin Delta Air Lines, United Airlines, American Airlines and Southwest Airlines. He didn't comment on the exit prices except to say, \"We did not take out anything like $7 [billion] or $8 billion.\" This contributed to Berkshire's massive $50 billion loss in the first quarter of 2020.<blockquote>在 2020 年伯克希尔年度股东大会上，巴菲特表示，他已斥资 70 亿至 80 亿美元增持达美航空、联合航空、美国航空和西南航空的股份。他没有对退出价格发表评论，只是说：“我们没有拿出 70 亿美元或 80 亿美元之类的东西。”这导致伯克希尔在2020年第一季度巨额亏损500亿美元。</blockquote> Since then the stocks have taken off, with American and Southwest up over 80% since their May 25, 2020 bottom, while United and Delta are up about 70%. Measuring gains from the May 25, 2020 trough of all four airlines produces even more spectacular results. United was up over 200% over the period, while American was up 190%.<blockquote>此后，股市开始起飞，美国航空和西南航空自 2020 年 5 月 25 日触底以来上涨了 80% 以上，而联合航空和达美航空则上涨了约 70%。衡量所有四家航空公司2020年5月25日低谷的收益会产生更惊人的结果。在此期间，美联航上涨超过 200%，而美国航空上涨 190%。</blockquote> The worst losses over the period, which aren't necessarily reflective of Berkshire losses in the positions, were palpable. United was down over 70% at the nadir, and both Delta and American had sunk over 60%. An investment that loses 70% requires a 333% gain to get back to breakeven.<blockquote>这一时期最严重的损失是显而易见的，这不一定反映了伯克希尔的头寸损失。美联航在最低点下跌超过 70%，达美航空和美国航空均下跌超过 60%。亏损 70% 的投资需要 333% 的收益才能恢复盈亏平衡。</blockquote> Buffett's first airline<blockquote>巴菲特的第一家航空公司</blockquote> Buffett's first investment foray into airlines began with USAir preferred stock in 1989. While Berkshire made money on the dividends, Buffett himself would lament the decision for decades, casting aspersions on the low-profit, expensive nature of the industry.<blockquote>巴菲特首次涉足航空公司投资始于 1989 年的 USAir 优先股。虽然伯克希尔靠股息赚了钱，但巴菲特本人几十年来一直对这一决定感到遗憾，并对该行业低利润、昂贵的性质进行了诽谤。</blockquote> In the sameinterviewwhere Buffett self-identified as an \"aeroholic,\" he said, \"If a capitalist had been present at Kitty Hawk back in the early 1900s, he should have shot Orville Wright. He would have saved his progeny money. But seriously, the airline business has been extraordinary. It has eaten up capital over the past century like almost no other business because people seem to keep coming back to it and putting fresh money in. You've got huge fixed costs, you've got strong labor unions and you've got commodity pricing. That is not a great recipe for success.\"<blockquote>在同一次采访中，巴菲特自称是 “航空迷”，他说：“如果 20 世纪初有一个资本家出现在小鹰机场，他应该枪杀了奥维尔·赖特。他会为他的后代省钱。但说真的，航空业非同寻常。在过去的一个世纪里，它消耗的资本几乎是其他任何行业都无法比拟的，因为人们似乎不断回到这个行业，并投入新的资金。你有巨大的固定成本，你有强大的工会，你有商品定价。这不是成功的好秘诀。”</blockquote> And yet, 2016 happened — when Berkshire first loaded up on the industry in a big way. In itsannual shareholder letterfor that fiscal year, Buffett didn't address the new airline stock holdings — except with a passing joke about shareholders flying into the annual meeting.<blockquote>然而，2016年发生了——伯克希尔首次大规模进军该行业。在该财年的年度股东信中，巴菲特没有谈到新持有的航空公司股票——除了顺便开了一个关于股东飞往年会上的玩笑。</blockquote> \"Keep in mind that airlines have sometimes jacked up prices for the Berkshire weekend — though I must admit I have developed some tolerance, bordering on enthusiasm, for that practice now that Berkshire has made large investments in America’s four major carriers,\"wrote Buffett.<blockquote>“巴菲特写道：”请记住，航空公司有时会抬高伯克希尔周末的价格--不过我必须承认，既然伯克希尔已经对美国四大航空公司进行了大量投资，我对这种做法已经产生了一些容忍度，近乎热情。</blockquote> When Buffett finally cut Berkshire's losses in 2020, Bill Smead, chief investment officer of Smead Capital Management, wrote acritical reviewof the matter but was careful to praise Buffett's tremendous historical track record.<blockquote>当巴菲特最终在 2020 年削减伯克希尔的亏损时，斯米德资本管理公司首席投资官比尔·斯米德 (Bill Smead) 对此事发表了不加批判的评论，但小心翼翼地赞扬了巴菲特巨大的历史记录。</blockquote> \"We are big fans of Buffett’s theories about businesses with low capital requirements and the ability to throw off cash to owners. Unfortunately, he recently emphasized indexing and didn’t shy folks away from today’s glamour tech stocks which require more and more capital,\" wrote Smead.<blockquote>“我们非常喜欢巴菲特的理论，即资本要求低、能够向所有者提供现金的企业。不幸的是，他最近强调了指数化，并没有让人们远离当今需要越来越多资本的魅力科技股，”斯米德写道。</blockquote> From great to gruesome<blockquote>从伟大到可怕</blockquote> InBerkshire’s 2007 Letter to Shareholders, Buffett outlined three types of enterprises that he characterized as “The Great, the Good and the Gruesome. \"[T]think of three types of 'savings accounts.' The great one pays an extraordinarily high interest rate that will rise as the years pass. The good one pays an attractive rate of interest that will be earned also on deposits that are added. Finally, the gruesome account both pays an inadequate interest rate and requires you to keep adding money at those disappointing returns.\"<blockquote>在伯克希尔 2007 年致股东的信中，巴菲特概述了三种类型的企业，他称之为 “伟大的、好的和糟糕的。”“想想三种类型的'储蓄账户'。伟大的储蓄账户支付的利率异常高，而且会随着时间的推移而上升。好的储蓄账户支付的利率很有吸引力，增加的存款也能赚取利率。最后，糟糕的账户支付的利率既不足，又需要你不断地以令人失望的回报存钱”。</blockquote> Smead suggests Buffett should have taken his own advice. \"He profiled 'gruesome' business[es] by using airlines as his poster child and described them in the opening quote of this letter. Buffett would have been well served by listening to his 13-year-younger self, and we think his description of gruesome stocks should serve us well in assessing today’s market.\"<blockquote>斯米德建议巴菲特应该采纳自己的建议。“他将航空公司作为自己的典型代表，描述了'可怕'的企业，并在这封信的开头引言中对它们进行了描述。巴菲特如果能听听比他年轻 13 岁的自己的话，会大有裨益，我们认为他对可怕股票的描述应该能很好地帮助我们评估当今的市场。”</blockquote> A year later, Smead served up a reminder for investors to stick to their competency, saying to Yahoo Finance viewers in an interview, \"[Buffett] got reminded that he should belong to airlines anonymous. And by the way, all of us have investors in industries or sectors that we should probably never get involved in.\"<blockquote>一年后，斯米德提醒投资者坚持自己的能力，他在接受雅虎财经观众采访时表示：“（巴菲特）被提醒，他应该属于匿名航空公司。顺便说一句，我们所有人都有投资者进入我们可能永远不应该涉足的行业或领域。”</blockquote>","source":"lsy1584348713084","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How Warren Buffett's airline stocks have performed since Berkshire Hathaway sold them<blockquote>自伯克希尔哈撒韦公司出售沃伦·巴菲特的航空股票以来，它们的表现如何</blockquote></title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 12.5px; color: #7E829C; margin: 0;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow Warren Buffett's airline stocks have performed since Berkshire Hathaway sold them<blockquote>自伯克希尔哈撒韦公司出售沃伦·巴菲特的航空股票以来，它们的表现如何</blockquote>\n</h2>\n<h4 class=\"meta\">\n\nYahoo2021-04-27 21:59\n\n</h4>\n</header>\n<article>\nWarren Buffett has a storied history with airline stocks, oncequipping, \"I am Warren and I am an aeroholic.\" But the spectacular returns for the industry over the last year are casting a dark cloud on Berkshire Hathaway's decisionto dump all of its airline holdingsin May 2020 as prices were bottoming. Berkshire loaded up on stock of the four major U.S. carriers in 2016.<blockquote>沃伦·巴菲特 (Warren Buffett) 在航空股方面有着传奇的历史，他曾经说过：“我是沃伦，我是一个航空迷。”但去年该行业的惊人回报给伯克希尔·哈撒韦公司决定在 2020 年 5 月价格触底时出售其所有航空公司股份蒙上了一层乌云。伯克希尔哈撒韦公司在 2016 年增持了美国四大航空公司的股票。</blockquote> At the 2020 Berkshire annual shareholders meeting, Buffett said he'd spent $7 billion to $8 billionamassing stakesin Delta Air Lines, United Airlines, American Airlines and Southwest Airlines. He didn't comment on the exit prices except to say, \"We did not take out anything like $7 [billion] or $8 billion.\" This contributed to Berkshire's massive $50 billion loss in the first quarter of 2020.<blockquote>在 2020 年伯克希尔年度股东大会上，巴菲特表示，他已斥资 70 亿至 80 亿美元增持达美航空、联合航空、美国航空和西南航空的股份。他没有对退出价格发表评论，只是说：“我们没有拿出 70 亿美元或 80 亿美元之类的东西。”这导致伯克希尔在2020年第一季度巨额亏损500亿美元。</blockquote> Since then the stocks have taken off, with American and Southwest up over 80% since their May 25, 2020 bottom, while United and Delta are up about 70%. Measuring gains from the May 25, 2020 trough of all four airlines produces even more spectacular results. United was up over 200% over the period, while American was up 190%.<blockquote>此后，股市开始起飞，美国航空和西南航空自 2020 年 5 月 25 日触底以来上涨了 80% 以上，而联合航空和达美航空则上涨了约 70%。衡量所有四家航空公司2020年5月25日低谷的收益会产生更惊人的结果。在此期间，美联航上涨超过 200%，而美国航空上涨 190%。</blockquote> The worst losses over the period, which aren't necessarily reflective of Berkshire losses in the positions, were palpable. United was down over 70% at the nadir, and both Delta and American had sunk over 60%. An investment that loses 70% requires a 333% gain to get back to breakeven.<blockquote>这一时期最严重的损失是显而易见的，这不一定反映了伯克希尔的头寸损失。美联航在最低点下跌超过 70%，达美航空和美国航空均下跌超过 60%。亏损 70% 的投资需要 333% 的收益才能恢复盈亏平衡。</blockquote> Buffett's first airline<blockquote>巴菲特的第一家航空公司</blockquote> Buffett's first investment foray into airlines began with USAir preferred stock in 1989. While Berkshire made money on the dividends, Buffett himself would lament the decision for decades, casting aspersions on the low-profit, expensive nature of the industry.<blockquote>巴菲特首次涉足航空公司投资始于 1989 年的 USAir 优先股。虽然伯克希尔靠股息赚了钱，但巴菲特本人几十年来一直对这一决定感到遗憾，并对该行业低利润、昂贵的性质进行了诽谤。</blockquote> In the sameinterviewwhere Buffett self-identified as an \"aeroholic,\" he said, \"If a capitalist had been present at Kitty Hawk back in the early 1900s, he should have shot Orville Wright. He would have saved his progeny money. But seriously, the airline business has been extraordinary. It has eaten up capital over the past century like almost no other business because people seem to keep coming back to it and putting fresh money in. You've got huge fixed costs, you've got strong labor unions and you've got commodity pricing. That is not a great recipe for success.\"<blockquote>在同一次采访中，巴菲特自称是 “航空迷”，他说：“如果 20 世纪初有一个资本家出现在小鹰机场，他应该枪杀了奥维尔·赖特。他会为他的后代省钱。但说真的，航空业非同寻常。在过去的一个世纪里，它消耗的资本几乎是其他任何行业都无法比拟的，因为人们似乎不断回到这个行业，并投入新的资金。你有巨大的固定成本，你有强大的工会，你有商品定价。这不是成功的好秘诀。”</blockquote> And yet, 2016 happened — when Berkshire first loaded up on the industry in a big way. In itsannual shareholder letterfor that fiscal year, Buffett didn't address the new airline stock holdings — except with a passing joke about shareholders flying into the annual meeting.<blockquote>然而，2016年发生了——伯克希尔首次大规模进军该行业。在该财年的年度股东信中，巴菲特没有谈到新持有的航空公司股票——除了顺便开了一个关于股东飞往年会上的玩笑。</blockquote> \"Keep in mind that airlines have sometimes jacked up prices for the Berkshire weekend — though I must admit I have developed some tolerance, bordering on enthusiasm, for that practice now that Berkshire has made large investments in America’s four major carriers,\"wrote Buffett.<blockquote>“巴菲特写道：”请记住，航空公司有时会抬高伯克希尔周末的价格--不过我必须承认，既然伯克希尔已经对美国四大航空公司进行了大量投资，我对这种做法已经产生了一些容忍度，近乎热情。</blockquote> When Buffett finally cut Berkshire's losses in 2020, Bill Smead, chief investment officer of Smead Capital Management, wrote acritical reviewof the matter but was careful to praise Buffett's tremendous historical track record.<blockquote>当巴菲特最终在 2020 年削减伯克希尔的亏损时，斯米德资本管理公司首席投资官比尔·斯米德 (Bill Smead) 对此事发表了不加批判的评论，但小心翼翼地赞扬了巴菲特巨大的历史记录。</blockquote> \"We are big fans of Buffett’s theories about businesses with low capital requirements and the ability to throw off cash to owners. Unfortunately, he recently emphasized indexing and didn’t shy folks away from today’s glamour tech stocks which require more and more capital,\" wrote Smead.<blockquote>“我们非常喜欢巴菲特的理论，即资本要求低、能够向所有者提供现金的企业。不幸的是，他最近强调了指数化，并没有让人们远离当今需要越来越多资本的魅力科技股，”斯米德写道。</blockquote> From great to gruesome<blockquote>从伟大到可怕</blockquote> InBerkshire’s 2007 Letter to Shareholders, Buffett outlined three types of enterprises that he characterized as “The Great, the Good and the Gruesome. \"[T]think of three types of 'savings accounts.' The great one pays an extraordinarily high interest rate that will rise as the years pass. The good one pays an attractive rate of interest that will be earned also on deposits that are added. Finally, the gruesome account both pays an inadequate interest rate and requires you to keep adding money at those disappointing returns.\"<blockquote>在伯克希尔 2007 年致股东的信中，巴菲特概述了三种类型的企业，他称之为 “伟大的、好的和糟糕的。”“想想三种类型的'储蓄账户'。伟大的储蓄账户支付的利率异常高，而且会随着时间的推移而上升。好的储蓄账户支付的利率很有吸引力，增加的存款也能赚取利率。最后，糟糕的账户支付的利率既不足，又需要你不断地以令人失望的回报存钱”。</blockquote> Smead suggests Buffett should have taken his own advice. \"He profiled 'gruesome' business[es] by using airlines as his poster child and described them in the opening quote of this letter. Buffett would have been well served by listening to his 13-year-younger self, and we think his description of gruesome stocks should serve us well in assessing today’s market.\"<blockquote>斯米德建议巴菲特应该采纳自己的建议。“他将航空公司作为自己的典型代表，描述了'可怕'的企业，并在这封信的开头引言中对它们进行了描述。巴菲特如果能听听比他年轻 13 岁的自己的话，会大有裨益，我们认为他对可怕股票的描述应该能很好地帮助我们评估当今的市场。”</blockquote> A year later, Smead served up a reminder for investors to stick to their competency, saying to Yahoo Finance viewers in an interview, \"[Buffett] got reminded that he should belong to airlines anonymous. And by the way, all of us have investors in industries or sectors that we should probably never get involved in.\"<blockquote>一年后，斯米德提醒投资者坚持自己的能力，他在接受雅虎财经观众采访时表示：“（巴菲特）被提醒，他应该属于匿名航空公司。顺便说一句，我们所有人都有投资者进入我们可能永远不应该涉足的行业或领域。”</blockquote>\n<div class=\"bt-text\">\n\n\n 来源：<a href=\"https://finance.yahoo.com/news/how-warren-buffetts-airline-stocks-have-performed-since-berkshire-hathaway-sold-them-134849843.html\">Yahoo</a>\n为提升您的阅读体验，我们对本页面进行了排版优化\n\n\n</div>\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAL":"美国航空","UAL":"联合大陆航空"},"source_url":"https://finance.yahoo.com/news/how-warren-buffetts-airline-stocks-have-performed-since-berkshire-hathaway-sold-them-134849843.html","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1147181024","content_text":"Warren Buffett has a storied history with airline stocks, oncequipping, \"I am Warren and I am an aeroholic.\" But the spectacular returns for the industry over the last year are casting a dark cloud on Berkshire Hathaway's decisionto dump all of its airline holdingsin May 2020 as prices were bottoming. Berkshire loaded up on stock of the four major U.S. carriers in 2016.\nAt the 2020 Berkshire annual shareholders meeting, Buffett said he'd spent $7 billion to $8 billionamassing stakesin Delta Air Lines, United Airlines, American Airlines and Southwest Airlines. He didn't comment on the exit prices except to say, \"We did not take out anything like $7 [billion] or $8 billion.\" This contributed to Berkshire's massive $50 billion loss in the first quarter of 2020.\nSince then the stocks have taken off, with American and Southwest up over 80% since their May 25, 2020 bottom, while United and Delta are up about 70%. Measuring gains from the May 25, 2020 trough of all four airlines produces even more spectacular results. United was up over 200% over the period, while American was up 190%.\nThe worst losses over the period, which aren't necessarily reflective of Berkshire losses in the positions, were palpable. United was down over 70% at the nadir, and both Delta and American had sunk over 60%. An investment that loses 70% requires a 333% gain to get back to breakeven.\nBuffett's first airline\nBuffett's first investment foray into airlines began with USAir preferred stock in 1989. While Berkshire made money on the dividends, Buffett himself would lament the decision for decades, casting aspersions on the low-profit, expensive nature of the industry.\nIn the sameinterviewwhere Buffett self-identified as an \"aeroholic,\" he said, \"If a capitalist had been present at Kitty Hawk back in the early 1900s, he should have shot Orville Wright. He would have saved his progeny money. But seriously, the airline business has been extraordinary. It has eaten up capital over the past century like almost no other business because people seem to keep coming back to it and putting fresh money in. You've got huge fixed costs, you've got strong labor unions and you've got commodity pricing. That is not a great recipe for success.\"\nAnd yet, 2016 happened — when Berkshire first loaded up on the industry in a big way. In itsannual shareholder letterfor that fiscal year, Buffett didn't address the new airline stock holdings — except with a passing joke about shareholders flying into the annual meeting.\n\"Keep in mind that airlines have sometimes jacked up prices for the Berkshire weekend — though I must admit I have developed some tolerance, bordering on enthusiasm, for that practice now that Berkshire has made large investments in America’s four major carriers,\"wrote Buffett.\nWhen Buffett finally cut Berkshire's losses in 2020, Bill Smead, chief investment officer of Smead Capital Management, wrote acritical reviewof the matter but was careful to praise Buffett's tremendous historical track record.\n\"We are big fans of Buffett’s theories about businesses with low capital requirements and the ability to throw off cash to owners. Unfortunately, he recently emphasized indexing and didn’t shy folks away from today’s glamour tech stocks which require more and more capital,\" wrote Smead.\nFrom great to gruesome\nInBerkshire’s 2007 Letter to Shareholders, Buffett outlined three types of enterprises that he characterized as “The Great, the Good and the Gruesome. \"[T]think of three types of 'savings accounts.' The great one pays an extraordinarily high interest rate that will rise as the years pass. The good one pays an attractive rate of interest that will be earned also on deposits that are added. Finally, the gruesome account both pays an inadequate interest rate and requires you to keep adding money at those disappointing returns.\"\nSmead suggests Buffett should have taken his own advice. \"He profiled 'gruesome' business[es] by using airlines as his poster child and described them in the opening quote of this letter. Buffett would have been well served by listening to his 13-year-younger self, and we think his description of gruesome stocks should serve us well in assessing today’s market.\"\nA year later, Smead served up a reminder for investors to stick to their competency, saying to Yahoo Finance viewers in an interview, \"[Buffett] got reminded that he should belong to airlines anonymous. And by the way, all of us have investors in industries or sectors that we should probably never get involved in.\"","news_type":1,"symbols_score_info":{"AAL":0.9,"UAL":0.9}},"isVote":1,"tweetType":1,"viewCount":2671,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":16,"subscribersOnly":false,"subscribersOnlyAccessible":false,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/377511863"}