High Yield Investing: Bend It Like Buffett

Seeking AlphaDividend IdeasHigh Yield Investing: Bend It Like BuffettJun. 28, 2020 9:45 AM ET|| Includes: AAL, BRK-A, BRK-B, DAL, DIA, GNL, GNL.PA, GNL.PB, GS, GS.PA, GS.PC, GS.PD, GS.PJ, GS.PN, LUV, OXY, QQQ, SPY, UALby: Rida MorwaRida Morwa High Dividend OpportunitiesThe #1 Service for Income Investors and Retirees, 9-10% dividend yield.SummaryWarren Buffett is on the sidelines of the current market rally.
The fickle market is quick to write him off.
We think we need to look deeper at the indicators and determine whether he may be right.
We identify the sweet spot of returns versus risk using his methodology.

Co-produced with Trapping Value
It is easy to pass judgement with perfect 20:20 hindsight. We saw that in the recent extreme market volatility as everyone had pangs of selling too soon or buying too early. We also saw a lot of flak being dished out at the greatest investor of all time, Warren Buffett. He was "coached" by investors as he booked losses on Airlines.
Buffett confirmed that he had sold all of his stakes in the four largest U.S. airlines: His positions in United (UAL), American (AAL) , Southwest (LUV) and Delta Air Lines (DAL) were cumulatively worth north of $4 billion.

“The world has changed for airlines,” Buffett said, noting that the industry has been “really hurt by a forced shutdown” due to the coronavirus.
Buffett said Berkshire originally invested between $7 billion and $8 billion for large stakes in the major airlines, but the company didn’t get anywhere near that in return for its investment.
“It turned out I was wrong,” the Oracle of Omaha said, adding that he’d made an “understandable mistake” given the unforeseen downturn in the industry. I don’t know that three, four years from now people will fly as many passenger miles as they did last year,” Buffett warned. “You’ve got too many planes.”
Source: Forbes
While the sale itself was unremarkable, Buffett caught heat... Read more