Why do I love Singapore Airlines?
As a novice investor in Singapore who believes in Warren Buffett's investment philosophy, I would like to share my investment experience in my favorite brand: Singapore Airlines. $SIA(C6L.SG$
Why do I love Singapore Airlines?![]()
Well, besides the excellent service and luxurious experience they provide, the airline has a long-standing reputation for being one of the best in the industry. As an investor, this gives me confidence in their ability to weather any potential storms.
So, how did I invest in Singapore Airlines? I started by doing some research on the company's financials and reading up on their business model. I also looked at their competitors and the industry as a whole to get a better understanding of the market.
After analyzing the data, I decided to use dollar-cost averaging to invest in the company. This method allows me to invest a fixed amount of money regularly, regardless of the stock price. This way, I can take advantage of any dips in the stock price and avoid the temptation to time the market.
Of course, investing in stocks always comes with risks, and I have faced some challenges along the way. The COVID-19 pandemic has hit the aviation industry hard, and Singapore Airlines was no exception. However, I remain confident in the airline's long-term prospects and continue to hold onto my investment.
Overall, investing in a brand that I love and use regularly has been a rewarding experience.![]()
It has given me a greater sense of connection to the company and has allowed me to participate in their success. But, as with any investment, it's important to do your research, understand the risks, and invest with a long-term perspective.
Why do I love Singapore Airlines?
So, how did I invest in Singapore Airlines? I started by doing some research on the company's financials and reading up on their business model. I also looked at their competitors and the industry as a whole to get a better understanding of the market.
After analyzing the data, I decided to use dollar-cost averaging to invest in the company. This method allows me to invest a fixed amount of money regularly, regardless of the stock price. This way, I can take advantage of any dips in the stock price and avoid the temptation to time the market.
Of course, investing in stocks always comes with risks, and I have faced some challenges along the way. The COVID-19 pandemic has hit the aviation industry hard, and Singapore Airlines was no exception. However, I remain confident in the airline's long-term prospects and continue to hold onto my investment.
Overall, investing in a brand that I love and use regularly has been a rewarding experience.
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ronny_at_moomoo : thanks for sharing![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
MultiBaggers : I am sorry to burst your bubble but airline stocks are susceptible to oil price fluctuations, high capital expenditure (the planes generally have a life span of 7 years), air traffic rule changes etc and many other factors.
Warren Buffett sold off all his airline stocks held by Berkshire Hathaway during the pandemic, calling them one of his worst investments ever.
Hence, you may want to think over this investment of yours for the long term.
If you truly believe in Warren Buffett’s investment philosophy, then you ought to invest in companies that have wide economic moat and has a long runway (pun intended).
Good luck !
ZnWC : Warren Buffett sold airline stock at a loss in year 2020 because of COVID-19 which at that time have no vaccine against the virus and put a halt to air travel. The situation is quite different now that we have a vaccine. SIA share price rallied when China opened its door to air travel with no covid-19 testing.
There is no record that Warren Buffett said airline stocks was his worst investment but he did said "biggest investment mistake" on several occasions including purchasing Tesco and Berkshire Hathaway and not buying Google and Amazon.
Warren Buffett's investment style:
A staunch believer in the value-based investing model who held the belief that people should only buy stocks in companies that exhibit solid fundamentals, strong earnings power, and the potential for continued growth. Buffett’s tenets fall into the following four categories:
1. Business
2. Management
3. Financial measures
4. Value
You can learn from Guru their style in investment but can't blindly follow what they did or said. Guru is also human and make mistakes. If you've done your homework and justify that SIA is a good company to invest, there's no worries. Warren Buffett likes dividend stocks and SIA pay good dividend.
Source:
https://www.investopedia.com/investing/warren-buffetts-investing-style-reviewed/#:~:text=A%20staunch%20believer%20in%20the,the%20potential%20for%20continued%20growth.
https://www.etmoney.com/learn/personal-finance/warren-buffetts-7-biggest-investing-mistakes-what-can-we-learn/#:~:text=Dexter%20Shoe%20Company,deal%20he%20had%20ever%20made.
bullrider_21 MultiBaggers : Well said. The Covid-19 pandemic hit travel and airline stocks really hard. In fact, it was one of the most badly hit sectors. There were lockdowns and travel curbs. 3 years have passed and the share price has yet to recover to pre- pandemic level.
You may like a brand, but buy according to its fundamentals. Its fundamentals have clearly changed for the worse during the pandemic. Also you need to learn from your experience during SARS. SARS was deadly but quite brief. Airline stocks were also badly affected then.
soyabean89 bullrider_21 : Bull sensei, what's your view of hotel/hospitality reits?namely hmi Im bullish on then since they displayed versatility compares to airlines
bullrider_21 soyabean89 : I think they may rise as the Chinese satisfy their demand for overseas travel after such a long period of lockdowns. The F1 in Sep may also help.
soyabean89 bullrider_21 : Heard many "fud" about bleak chinese economy with many factories closes, foreclosure of sme and bankruptcy. Any view on strong chinese demand for tourism action?
bullrider_21 soyabean89 : I think the effects from the reopening may be slower than expected. Some may still be hesitant to travel, but I believe it will recover in the next few months. China set a growth rate of 5%. If it growing slower than expected, China may cut rates to stimulate the economy. People had said China would have a banking or property crisis, but it never happen. I believe China will do what it takes to prevent the problems from happening.