 Eat. Over. What's up? When it gets Mr. V here, welcome to another video guys. So in today's video, we're going to take a look at airline companies. We got some really bad news last week when Warren Buffett actually decided to pull all Berkshire Hardaway investments in airline companies. I mean, it's a massive, massive blow to the airline companies and if you look today, they have taken a beating. So before we actually jump into examining whether it's still a buy or sell at this point, I want us to kind of talk about some of the key things that I got from the transcript of the Berkshire Hardaway call. So Warren Buffett actually made three key things that actually resonated with me. Number one is that he actually praised the management of all these airline companies. So we're talking about Delta, American, Southwest and United. So he said they have good management. And so number two is that he said the problem of the airlines really facing this challenge is not because of them, but it's because of the virus, which we all understand virus came in beyond control of the airline companies and really smack them in the face. And then finally, number three take away was that he's going to take between three to five years for the airline companies to fully recover. And so after losing a ton of money, Berkshire Hardaway is actually pulling all the assets from airlines. As an investor, I can understand that Warren Buffett is one of the smartest investors of our time, if not the smartest investors of our time. So when he makes a move like this, what happens, you see a ton of panic. And when there's panic, there's a lot of sell-off. And so people are going to start selling out when everybody's going to downgrade airline companies because Warren Buffett is pulling out. But I want you to take a step back as your own individual investor, because I understand and again, I follow Warren Buffett religiously. And one of his key quotes that I really, really love, and I use that as one of my investment approaches is that you should be fearful when others are greedy and be greedy when others are fearful. And so if I follow that same principle, right now, what's happening is that people are fearful. People are selling off all airline stocks because Warren Buffett pulled out. So me, if I follow what he says, now it's time for me to be greedy. So I'm going to look at the top airlines and see which ones really fit my need for full disclosure. I already have Delta and I have American in my portfolio. So United and maybe Southwest, I'm going to look at them and consider adding some of that to my portfolio. But before we even get to the details, here's what I want you to really examine. Airline companies, as we all know, took a really big hit with this virus. Everything, people don't fly. I mean, basically we're trapped in the house, so there's really no movement. And I don't foresee this just rebounding immediately, right? If tomorrow, if there is a vaccine for COVID-19, people are going to start going about their business because we cannot be trapped inside forever. What are you going to do? Drive your car across the country to go to work? There's people that live in the West Coast that work in the East Coast and vice versa or in the Midwest. So people are still going to fly, even if it means that people are going to start wearing a mask to fly. People are still going to fly. But the amount of people that just fly for, say, leisure, it's really going to reduce until there is a full confidence that this virus is under control. So you're going to see that. So it's going to be a slow return to flying, which would impact the airline companies. So where am I going with this? What I'm saying is, if you are a long-term investor, if you see value in any of these stocks, just because people are selling out because Warren Buffett actually pulls their investment in airlines, doesn't necessarily apply to you. You should be your own individual decision maker, not just follow the masses. Again, like I said, he states, if when people are fearful, it's time for you to be greedy and when people are greedy, it's time for you to be fearful. So I'm applying that same principle. People are being fearful right now with airlines and I'm looking at being greedy. So I'm going to do my homework. I'm going to go back again and look at it again. I'm going to look at two. I'm going to look at Southwest and I'm going to look at United and C because, like I said, I already have Delta in America. And so I'm looking at if they give the drop again, I'll add to my position. My investments in these airlines is not short term. So if you are somebody that's looking to make a return in the next, say, six months, 12 months, one year, two year, you're expecting to get all your money back. That's probably not going to happen. But in the next four or five years, when everything gets back to normal, you're going to see tremendous amount of growth. So to me, that is my time horizon. I'm not looking in the next 12 months. So I'm going to invest in these companies. I'm not scared of other people. As a matter of fact, people panicking and selling off means good news to me. Means I should go in and buy just like Warren Buffett says. Yeah, so I think another good thing that I got out of the call is that Berkshire had a way right now has tremendous amount of cash in hand. So I'm going to be following them wisely and just to see where they're going to deploy that capital to, you know, to actually invest. Because there's a lot of money that they got. So I want to see which stocks he's looking at. Is he going to be looking at? Maybe work from home companies like Zoom and all that stuff. Or where is he going to put that money? Because oil and gas is taking a beating. Like you say, airlines are taking a beating. Tech as some tech companies are doing just fine. Others are struggling. So health care is another good place where he can potentially put that money. But I'm not Warren Buffett. I'm just another guy in his basement and making YouTube videos. But so here's what I want. I want to tell you investing in the stock market takes a lot of discipline, a lot of research and a game plan. I don't want you to blindly follow people just because somebody does this, means you should do it. I want you to invest doing your own research. In my case, like I'm trying to break it down. Airline companies are really, really struggling. And the prices are like 75% or even at somewhere like 80% down from their 52 week high that shows me there's a tremendous amount of opportunity there. One other thing that makes me think again, I want to invest more is that I don't anticipate that these companies are going to go bankrupt. As a matter of fact, the major airline companies actually get $25 billion from the stimulus package that Congress passed. So which is one of the reasons why Warren Buffett said he was living to. I totally forgot that when he said he's living because he doesn't like to invest in companies that take bailout money, which means they don't have cash to operate or again, that's his principle, which is good. So these companies took $25 billion and I don't see them going bankrupt. If there's any sort of bankruptcy, what I see instead is the company's consolidating. So American United, Southwest and Mike might consolidate and form a big giant, even more stronger company. Again, we depend so much on airlines for movement and stuff like that. So I don't see these companies disappearing. Like this business model is not going to go anywhere. So it's going to be here, but just be ready that if you're investing your money in this company, you're not looking at an immediate return. You're looking at long term. You're looking at this three years, four years, even five years before you can actually see full return to normal and profit. And hopefully a lot of the ones that have suspended their dividends, they can return to paying dividends again and then you get back to it. Ideally, times like this comes around every 10 years. So if this presents itself, I don't want to miss out on the opportunity. And this is my personal opinion. I'm taking the chance. I know the Oracle of Omaha says he's pulling out and people are pulling out along with him. I am moving in. I'm going into airlines. I'm watching as the price drops. I'm buying more. So question of the day, what do you guys think? Do you think airline companies are ever going to recover? Or this is just something. This is just panic because, hey, people are just prone to panicking when somebody like Warren Buffett makes a move. Or do you think it's a really, really bad idea to invest any money in airline companies right now? Let me know in the comment section. If you're new to the channel, we talk about how to earn money, how to save money, how to invest and build wealth. And if that's something that really interests you, go ahead and hit that subscribe button so you don't miss out on new content. And as always, guys, stay motivated.