The billionaire's Berkshire Hathaway investor conglomerate ranks Delta, Southwest, United and American among its top 25 stakes, and owns more than 8% of the four companies.
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This story originally appeared on Business Insider
Berkshire Hathaway , the world's fourth-richest man investment firm Warren Buffett , suffered another blow this week after President Donald Trump announced restrictions on European travel to the United States in response to the threat of the coronavirus, causing airline stocks plummeted .
The famous investor conglomerate has Delta Air Lines, Southwest Airlines, United Airlines and American Airlines among its 25 largest participations, and the quartet represented around 4% of its portfolio at the end of December. Berkshire owned more than 8% of each of the four companies, and those shares were worth around $ 10 billion at the time, according to Gurufocus .
However, the value of American and United have lost more than half since the beginning of this year, and shares in Delta and Southwest have fallen by more than 25%, as fears of coronavirus continue to affect travel demand. .
As a result, the value of Berkshire's holdings has dropped by more than a third to around $ 6.3 billion. If the pandemic continues to affect airline stocks, that loss could increase.
Buffett won't be too concerned. He recently argued that investors should celebrate the opportunity to buy quality stocks at a lower price. Berkshire also invested another $ 45 million in Delta shares last month after it fell 20% due to the coronavirus.
The outbreak of an oil price war between Saudi Arabia, Russia and other oil producers also promises to boost airlines' profits by reducing their fuel costs. Additionally, the Trump administration has promised to support airlines along with other industries experiencing the coronavirus outbreak.