Adsense

Showing posts with label Coronavirus. Show all posts
Showing posts with label Coronavirus. Show all posts

Warren Buffett and Airlines : 3 Different Perspectives

Warren Buffett and Airlines Industry


                                                      Warren Buffett is the most followed Investor billionaire in the world. People follow his advice and watch his moves very keenly. His quotes are legendary.
                                                         In early May 2020, he suddenly exited the airline's Industry selling his entire stake. He said: American magic has always prevailed and it will do so again 
                                                        The world has changed for airlines and we wish them well.
                                                    
                                                        In this article, we have discussed his views on the Airlines Industry. References are taken from his letter to shareholders that are published every year on the Berkshire Hathaway website.
                                                    .His views have changed about the industry. Recently he changed his views turning 180 degrees. His views can be divided into 3 different phases.                                    
Phase 1 (1987-2007) :
                                                      The worst sort of business is the one that grows rapidly, requires significant capital to engender growth, and then earns little or no money. Think airlines. Here durable competitive advantage has proven elusive ever since the days of Wright brothers. Indeed if a farsighted capitalist had been present at Kitty Hawk, He would have done his successors a huge favor by shooting  Orville down.  Warren Buffett wrote in his letter to shareholders in 2007.
                                                      The demand for capital by the airlines' industry has been insatiable. Investors have poured money into a bottomless pit, attracted by the growth when they should have been repelled by it. And I, to my shame, participated in this foolishness when I had Berkshire buy US Air preferred stock in 1989. As the ink was drying on our check, the company went into a tailspin, and before long our preferred dividend was no longer paid. But we got lucky. In one of the recurrent, but always misguided, bursts of optimism for airlines we were actually able to sell our shares in 1998 for a hefty gain. In the decade that following our sale, the company went bankrupt. Twice.

                                                     Buffett's remarks that investors would have saved billions of dollars if someone had shot down the Wright Brothers plane is perhaps the best-known criticism of Airlines Industries. Indeed just in the 2001-2005 period, US airlines collectively lost $40 billion.
                                                      For decades the airline industry has hovered between profit and loss. In most cases, the losses have outweighed the profits over time.
                                                     In 1994 Warren Buffett in his letter to shareholders wrote- As the capacity of the low-cost operators expanded, their fares began to force old-line high-cost airlines operators to cut their own, Eventually the fundamental rule of economics prevailed: In an unregulated commodity business, a company must lower its cost to competitive levels or face extinction.



Airplanes on a Busy Airport
Airplanes waiting on a busy Airport Terminal
                                                  

                                               The US airline industry was disrupted in early 1990 when low-cost airlines undercut the legacy carrier's fares. The rapid growth of low-cost airlines led to big losses across the industry. Legacy carriers were forced to match their competitors otherwise their base customers would drift away.
Phase 2 (2015-16)
                                                In 2015-16 Warren Buffett decided to buy Airlines Stocks. He changed his long standing stance. He had already purchased Railroad companies in the 2000-2003 period and was interested in transportation. He purchased shares in Delta, American, Southwest, and United Airlines. Probable reasons were as follows.
  • Rising Demand for Seats.
  • Consolidation in the Airlines Industry
  • Reliable Buybacks in Stocks
  • Relative Stable Prices
  • Efficient Managers.
                                        Warren Buffett knew they have terrible economies but stable outlook may have caused him to change his mind. He had thought that Berkshire will get a higher rate of return because of the low multiples of the stocks. He purchased about 9%-11% in each of these stocks. In between, there was a rumor that Berkshire may purchase majority shares in Southwest Airlines. Possibility of share buybacks by companies also made him change is views.
Phase 3 (COVID 19 Pandemic 2020):
                                         The COVID 19 Pandemic hit the airline industry badly. The shares of Airlines started falling. The passenger numbers started falling. The buyback of the shares was put on the backburner.

                                      The current crisis is creating a huge amount of anxiety and changing consumers psyche. Some industries may be permanently altered by the coronavirus such as airlines. Berkshire was a top three shareholder in American Airlines Group Inc, Delta Airlines Inc, Southwest Airlines Co, and United Airlines Holdings Inc, as recently as April 2020. Buffett has decided to completely exit from his positions. The world has changed for airliners and we wish them well.
                                       Even though Buffett is the long term believer of the US economy as a whole his 180-degree turn on the airline industry shows that he sees virus changing some consumer behavior. I believe in the American story and I hope my successors will continue to believe in the same.He informed his shareholders about the same. He took money out of the Airlines Industry. This was done at a substantial loss.

                                      He said: American magic has always prevailed and it will do so again 
the world has changed for airlines and we wish them well.


Author : Dr Nishikant Sharma MD FACP
Health care Professional
Content Writer 


Dr Nishikant Sharma MD FACP

References from Berkshirehatahway.com and Businessinsider.com
https://www.berkshirehathaway.com/letters/2015ltr.pdf.
https://markets.businessinsider.com/news/stocks/why-warren-buffett-invested-big-4-airlines-sold-them-loss-2020-5-1029167021
To Know more about Mindful Investing:
https://www.mindfulnessdrnishikantmd.com/2019/08/mindful-investing.html

Covid 19 Pandemic & Diabetes : 3 Recommendations to keep You Healthy and Safe

COVID 19 Pandemic & Diabetes : 3 Recommendations to keep you Healthy and Safe


                              We are facing the worst worldwide epidemic in recent memory. What is puzzling is that many infected people have no symptoms while a few others are seriously ill. This includes people suffering from Diabetes. The people having Diabetes are having a more severe form of infection. 

                               Here are the 2 scholarly articles that I have found out for you regarding COVID 19 infection and Diabetes. It is followed by 3 Recommendations for your safe journey through these turbulent times.

                         
                              The first article is from Dr. Sten Madsbad, Dept of Endocrinology, Hvidovre Hospital, University of Copenhagen, Denmark. https://bit.ly/3eDWQ0z

                               The Ongoing COVID 19 infection is a double challenge for people with diabetes. Diabetes is a risk factor for the severity of the disease. Diabetes increases the chance of getting any infection. People who have uncontrolled blood sugar levels are at high risk of developing infection and its more severe form. During the lockdown conditions, people have to control blood sugar in a situation with decreased or more variable availability of food.

                              COVID 19 (Coronavirus Disease ) is caused by coronavirus SARS- CoV-2 organism. It has quickly spread to more than 160 countries across the globe. The mode of transmission is primarily by respiratory droplets between people. It is characterized by a wide variety of symptoms including fever, cough and breathing difficulties.


                                     
















         The 2nd article is from Medical News Today published recently. https://bit.ly/3eCwE6d

                                         More than 425 million people worldwide have diabetes. There are two types of diabetes: Type 1 and Type 2. Gestational diabetes is another type that affects some women during pregnancy.
                                        Type 1 Diabetes is an autoimmune type and usually present from childhood. It results in no or very little insulin production. These patients need Insulin to be given externally.
                                          The majority of people have type 2 diabetes and are on oral medicines. Many have Obesity and hypertension as well. Some of them may need Insulin as well.
                                          According to the Center for disease control and prevention (CDC) people with diabetes who develop COVID 19 are at a higher risk of developing a serious illness like Pneumonia.

                               
                                 However, with good blood sugar control, people with diabetes can reduce the risk of getting severely sick from COVID-1                                                                                         Here are our 3 recommendations for COVID 19 and Diabetes.

  1. Control your Blood sugar properly. Check Your Blood Sugar and HbA1c levels. Maintain HbA1c levels around 6.5 to 7. Continue treatment as per your doctor's advice.
  2. Avoid Excessive Amounts of Carbohydrates and Sugar. You can increase protein intake. Similarly, Excessive salts and fried food items should be avoided. The intake of green leafy vegetables and salads should be increased.
  3. Continue Physical Exercises. During quarantine periods many people are unable to go outside for walks and outdoor exercises. Try to do some workouts at home to remain fit. You can do aerobics and yoga at home. Mindfulness can also help to reduce anxiety and stress during these turbulent times.





     Author: Dr. Nishikant Sharma  MD     FACP. Consultant Internal Medicine Specialist with Special Interest in the field of Diabetes.

       He is also a student at Northwestern University Coursera.

  He is an advocate of Quality Healthcare for all at affordable prices.

      He wants to empower people with scientific knowledge so that they can face diseases successfully with confidence and a positive attitude.

Click here to know more about How to boost your immunity during COVID 19 Pandemic: https://bit.ly/2yj0hsR





How to Prevent Corona Virus Infection: 8 Essential Steps

                  How to Prevent Corona Virus Infection: Eight Essential Steps 

                          Now it is official. The new Coronavirus, COVID-19, is a pandemic. It is spreading to more and more countries. Northern Italy is in lockdown. More than 10,000 people are infected and 631 people have died. New cases have been detected in Uk, Germany, Austria, Japan, South Korea, and the United States. Globally more than 4200 people have died in this epidemic. As of today 31 deaths and more than 1000 cases have been reported in the US. The epidemic originated from Wuhan City In China in December 2019. However, the good news is that the number of new cases in China is decreasing.

                                China took some very harsh measures for the public good. Whole cities were walled off. Quarantine measures were strictly implemented. The results are now apparent. The number of new cases is decreasing in China.
                                However, other countries have shown some inertia in dealing with this crisis. Many countries have imposed travel bans late. The result is that the epidemic is spreading to the rest of the world. Many governments went into a state of denial initially like China. Early swift preventive actions can greatly help in the prevention of the spread of the disease.


                               Travel ban from China and especially from Wuhan has been implemented a little late. This has allowed the virus to spread across the world.


                               Corona Virus has spread from China to more countries. Coronavirus initially began in Wuhan city in China. Coronavirus is a zoonotic disease. Zoonotic diseases are infections that are transmitted from animals to human beings. These germs can be bacteria, viruses or parasites. Animal handlers can catch these infections due to proximity to them. Human to human transmission of these infections opens up the possibility of further spread of these infections. Sometimes it can take the form of an epidemic.


                                 It's not that the coronavirus is a new virus. Already four strains of coronavirus are present. These can cause illness ranging from the common cold to pneumonia. Many times its a mild respiratory infection that may even go unnoticed by many. (SARS_CoV)Severe Acute Respiratory Syndrome spread from animals to humans in 2002-2003. Its reservoir is perhaps bats that spread to other animals like cats. First infected cases occurred in the Guangdong province of China in 2002.


                                An epidemic of SARS affected almost 26 countries. Mortality was high in cases who had (ARDS) Acute respiratory distress syndrome.


                               Symptoms are flu-like and include body pain, fever, headache, breathlessness, and cough. The most frequent symptom reported was fever though it may be absent in initial stages. In severe cases, respiratory distress is present which leads to a fall in blood oxygen levels(SpO2).                                            Approximately 8100 people got infected. The mortality rate was around 9%.


                                The new Coronavirus is hitting more people than other epidemics. Lethality rate is approximately 3.5%. The good news is that the mortality rate of this infection is lower than other similar infections. It also produces symptoms like cough, body aches, fever, and breathlessness.
Many infections are mild and recover quickly.

 How to Prevent Corona Virus Infection: Eight Essential Steps 


  1. Avoid traveling to crowded places like bus stations, airports, public meetings, etc. In short, restrict non-essential travel. Avoid going to malls, public gatherings, cinema theatres as much as possible. Many schools have been closed to prevent the spread of infection.
  1. Wash your hands after using public utilities like toilets etc. While using escalators avoid touching rails or wash your hand after the event. Washing hands frequently helps in prevention. You should avoid touching your mouth, face, and eyes by your hands.
  1. If you have a cough use a facemask. It will prevent the spread from person to person. The infection spreads by droplets.
  1. If traveling through a crowded train or bus one can use a facemask to avoid droplet infections. You can use an alcohol-based sanitizer to clean your hands.
  1. If you are having diabetes then you should control it properly. People with diabetes tend to catch infections early and the course of the disease is more severe. Similarly, people with immunodeficiencies should be extra careful.
  1. If you come in contact with a suspected case of coronavirus then you should wear gloves to touch the person. You can wear a disposable suit in such cases. The COVID Virus 19 is secreted in feces also. Hence washing hands with soap after toilet use is important.
  1. Drinking warm water may help in staying hydrated. Warm saline gargles can help in any upper respiratory infection. Betadine gargles may help if you have symptoms of sore throat. Please make certain that you are not allergic to the agent.
  1. Make sure you are not having nutritional deficiencies like Iron, Zinc Or Vitamin C.Decrease in body immunity can impair our immune system and cause a more severe form of illness. Regular exercises should be done. Exercises should be done in open spaces preferably and not in a crowded gym. Sunshine always helps as it increases Vit D levels in the body. 
                            Staying hydrated is very important. But just drinking water will not cure the disease. If you have any symptoms of the disease then get checked in the nearby medical center. Throat swabs can be taken in suspected cases for examination.X Ray Chest and CT Scan of Chest is useful to determine the extent of Lung Involvement.
                             Prevention is the key to arresting the spread of this infection. Hoping by united efforts we will be able to control this epidemic more effectively.
For More information on control of diabetes please click on:-https://mindfulnes4you.blogspot.com/2020/02/7-incredibly-simple-ways-to-reduce-high.html
Article on New Corona Virus in Wuhan City China:
https://mindfulnes4you.blogspot.com/2020/01/new-corona-virus-in-wuhan-city-china.html

Special Report

3 Sticky Healthcare Stories : How to Communicate Effectively

 3 Sticky Healthcare Stories: How to Communicate Effectively         1                                       A friend of my friend is a fre...