Warren Buffett's exit from airline stocks is a wake-up call for index investors, Jim Cramer says

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Warren Buffett decide to dump airline stocks — here's why MadMoneyOnCNBC's JimCramer says this should be a wake-up call for index investors.

"I recommend selling" some position in the S&P 500 index fund "if the [upward] streak continues," Cramer said.

He also said he thinks "many investors are in denial about how bad things can be for" some of the most vulnerable companies. Cramer, on the other hand, has spent recent weeks advocating that "Mad Money" viewers opt for stock picking over index investing in this uncertain market. The host warns that a basket of stocks — such as the S&P 500, which is largely representative of large-cap publicly traded companies — forces investors to take the high-performing holdings with the laggards.

"If you're in individual stocks and they can grow even in tough times, then you should be in much better shape than the index-fund investors who are really stuck holding the bad with the good, because right now there's a lot more bad than Wall Street seems to think," he said.for the long haul at Berkshire's annual meeting. He said people are paying "huge amounts of money" for "advice they really don't need" through a stock brokerage.

"In my view, for most people, the best thing to do is owning the S&P 500 index fund," Buffett said. "If you bet on America and sustain that position for decades, you'd do far better than buying Treasury securities, or far better than following people who tell you" what securities to buy.

 

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MadMoneyOnCNBC jimcramer He is waiting for another flush. Another dip slightly below recent lows just to take out those stops👌

MadMoneyOnCNBC jimcramer Shitty advice. You can't beat the market and you're not Buffet. Stick to low cost index funds.

MadMoneyOnCNBC jimcramer So Boeing was 5 percent of entire market just want year ago. Not good

MadMoneyOnCNBC jimcramer Not really. CNBC has a success rate 10% on really anything financial. They make money on clicks.

MadMoneyOnCNBC jimcramer

MadMoneyOnCNBC jimcramer So no one will ever fly again? The whole point of INDEX FUNDS is ignoring the ups and downs and instead AVERAGES OVER LONG TERM!!!!

MadMoneyOnCNBC jimcramer The only way people will stop travelling is if we are all in jail, and while quarentine may feel like self imprisonment, it will be over in a matter of weeks and when it does, everyone will travel.

MadMoneyOnCNBC jimcramer 'Wake up call for index investors'🤦‍♂️ Almost everybody knows what's happening with the airline industry. May be I should stop relying on for advices 😶. Whatever happens I admire WarrenBuffett a lot, such a great investor of the history ❤️

MadMoneyOnCNBC jimcramer How about we stop worshipping him like he’s some investment deity? He has pretty much underperformed the S&P for the past two decades.

MadMoneyOnCNBC jimcramer If ALL of the Airlines went back to charging us ONE PRICE and STOP charging separately for a fn Seat, Bags, Breathing, perhaps people who have more respect for them. I'm just sick of the way they charge us these days! AmericanAir Delta united Allegiant AlaskaAir

MadMoneyOnCNBC jimcramer Warren bluffet, he’s jumping right back in soon as the price is right

MadMoneyOnCNBC jimcramer I don't care what jimcramer has to say about index funds. I can't build a diversified portfolio with out mutual funds or etfs. According to studies 80% of managed funds fail to beat the indexes. For that you get to pay commissions and higher fees.

MadMoneyOnCNBC jimcramer Not a good sign

MadMoneyOnCNBC jimcramer I admire Warren Buffett. Very much. 👍👍✌️👊

MadMoneyOnCNBC jimcramer Warren Buffett Investment Strategy: How to Profit Amid Coronavirus

MadMoneyOnCNBC jimcramer People should stop looking to CNBC for advice

MadMoneyOnCNBC jimcramer If you ask why he dump airline stocks, may be it is because you live on an another planet. Most of the airplanes are in a parking lot all around the world and most of them they gonna cry for help to governement.

MadMoneyOnCNBC jimcramer 영원히 유명한 사람들 이야기 들으며 살고 싶은 생각이 있긴 한데..

MadMoneyOnCNBC jimcramer 버핏 머리카락 숯이 없네...난 이게 마음 아프다...

MadMoneyOnCNBC jimcramer 怕亏本

MadMoneyOnCNBC jimcramer

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