I hear Warren Buffet’s voice over my shoulder telling me “Boeing stock is on sale.” Boeing is a huge defense contractor that is never going away. Maybe this is the bottom of their current crisis and it is a good time to buy?
A stock falling prices doesn't mean it is cheap. Buffett sold J&J just because they changed management, and he probably wasn't confortable with the new bosses. They don't have any other know drawbacks, and if you read investment media each one of them has one theory.
OTOH Buffett has said many times that stocks related with flying are usually a bad investment. And even when he invest, he says that he doesn't know why he keep doing it, as he knows it's a mistake.
And finally, he usually says that he no longer buy "cheap companies to take a last puff of a cigar butt", but "great companies that are going to do great forever".
Now do the aggregate: bad management + air stock + company in decline = not cheap for Buffett. The small investor could cash a rebound if it happens, but a behemot like B&H is not interested.
Boeing is an institution. Boeing shareholders are not. If the problems are systemic, the government can put Boeing into bankruptcy to wipe the slate clean.
I hear Warren Buffet’s voice over my shoulder telling me “Boeing stock is on sale.” Boeing is a huge defense contractor that is never going away. Maybe this is the bottom of their current crisis and it is a good time to buy?