Investment savant Warren Buffett says the hammering Boeing’s stock value is taking in the wake of the 737 MAX 8 certification fiasco won’t have a long-term effect on the aviation industry. “Obviously there’s a problem with this 737 MAX, but Boeing, you can bet they’re staying up 24 hours a day to get it worked out,” the 88-year-old Buffett said, speaking at a benefit event in Grapevine, Texas.
In just the past three weeks, Boeing’s stock price has sagged from $432.69 to $391.30 on April 2, a paper loss of about $13 billion for the company. The stock soared to a historical high in early March at $440.62, but plunged after the second crash of a Boeing 737 MAX 8, dragging the Dow down 150 points with it later in March.
Buffett, who once described airlines as suicidal business models, is now heavily invested in three airlines. His Berkshire Hathaway owns 9.9 percent of Southwest, 9.7 percent of American Airlines and 8.2 percent of United Airlines. “The airline industry is a very, very competitive business, and it will always be a competitive business,” he said. “I don’t think it’s a suicidal business anymore, but it was for quite a while.”
