Warren Buffett: 'American magic' will spur U.S. economic recovery

Warren Buffett expresses confidence in the United States economy, even as his holding company Berkshire Hathaway suffers a $49.75-billion loss in the 1st quarter of 2020. coronavirus

The 89-year-old made the sanguine prediction about the world's largest economy as his holding companyBuffett also announced on Saturday that his company had sold all its stakes in 4 major US airlines last month, as the pandemic"It turns out I was wrong," he said of his acquisitions of 10% stakes in American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines.

Buffett's announcement may further hurt airlines already pushed to the brink by coronavirus lockdown measures, now looking to the US government for $25 billion inBerkshire Hathaway, based in Omaha, Nebraska, called its 1st quarter setback"temporary" but said it could not reliably predict when its many businesses would return to normal or when consumers would resume their former buying habits.

"We are now a better country, as well as an incredibly more wealthy country, than we were in 1789.... We got a long ways to go but we moved in the right direction," he said, referencing the abolition of slavery and women's suffrage.Buffett is considered one of the savviest investors anywhere.

Buffett, in a statement, played down his company's bleak-looking net figure. He said a better measure of the company's performance was its operating earnings, which exclude investments and are less subject to sharp fluctuations.The brutal drop in the net – to a loss of $49.75 billion from a profit last year of $21.7 billion – resulted primarily from the virus-related decline in value of its broad investment portfolio, which ranges from energy to transport to insurance and technology.

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