Buffett Was Right Again: How Apple, Airlines, and Bitcoin Proved His Discipline

 

Buffett Was Right Again: Apple, Airlines, and Bitcoin

Buffett Doesn’t Get It Until He Does: The Case of Apple, Airlines, and Bitcoin

Over the past two decades, Warren Buffett has been repeatedly criticized for being late or entirely absent from some of the most dynamic shifts in the investment world. The Oracle of Omaha, with his classic value investing playbook, has often appeared out of step with the latest trends. Critics have accused him of missing out, failing to evolve, and clinging to a bygone era of investing. Yet, time and again, Buffett’s choices have either eventually aligned with market reality in striking ways or his refusals to follow the herd have protected Berkshire Hathaway from spectacular missteps. This pattern is not a weakness of foresight but rather proof of a deeper investing principle: what matters most isn't getting in early, but getting it right. Let's examine three such episodes Apple, airlines, and Bitcoin where Buffett was doubted, only to prove once again that his patience, discipline, and principles triumph over hype.

For years, Buffett was famous for his reluctance to invest in technology companies. He frequently cited his lack of understanding of the fast-changing tech sector and its unpredictable economics. “I don’t do tech,” he once said, a statement that defined his reputation for staying in the “boring” world of consumer staples, banks, and insurance. This aversion was reinforced by his failure to capitalize on early tech booms like Microsoft or Google. For many, it was proof that Buffett, brilliant as he was, didn’t “get” the 21st-century economy.

Then came Apple. In a move that surprised even his longtime followers, Buffett began buying Apple stock in 2016. Initially, it seemed like a departure from his principles. But as he later explained, he didn’t view Apple as a tech stock it was a consumer product company with unparalleled brand loyalty and pricing power. Apple became Berkshire Hathaway’s single largest holding, and over the following years, it yielded tens of billions in unrealized gains. Buffett himself called it “probably the best business I know in the world.” Suddenly, the man who “missed tech” was hailed for executing one of the greatest trades of the modern era. The lesson? Buffett didn’t jump into Apple because it was hot he waited until it made sense within his framework. As he once said, “Time is the friend of the wonderful business.”

Another high-profile episode came with airline stocks. In the mid-2010s, Buffett shocked investors again by purchasing stakes in Delta, American Airlines, Southwest, and United. For a man who once swore off airline stocks calling them a “death trap” after a disastrous investment in USAir in the 1990s this reversal seemed strange. Yet Buffett explained that industry consolidation and cost discipline had turned airlines into more rational businesses. By 2019, the investments seemed to be paying off.

Then came COVID-19. The global pandemic devastated air travel, and in 2020, Buffett sold all of Berkshire’s airline holdings at a steep loss. Critics jumped at the opportunity to pounce: “Buffett panicked.” “He sold the bottom.” “He abandoned his own principles.” But once again, hindsight paints a different picture. Airline stocks continued to struggle with recovery, and many still haven't returned to pre-pandemic highs. Operational disruptions, labor shortages, and fuel costs have weighed heavily. Buffett didn’t panic he reassessed. He recognized that the long-term thesis no longer held, and he acted decisively. That is not weakness it’s discipline. As he once said, “The most important thing to do if you find yourself in a hole is to stop digging.”

The most contentious case, perhaps, is cryptocurrency particularly Bitcoin. Buffett has been unrelenting in his disdain for crypto assets, famously calling Bitcoin “rat poison squared.” He has repeatedly argued that crypto has no intrinsic value, produces nothing, and relies entirely on the belief that someone else will pay more for it later. In a world enamored with blockchain, NFTs, and decentralized finance, Buffett’s comments sounded curmudgeonly, even out-of-touch. Tech evangelists and young investors ridiculed his stance, declaring him irrelevant in a digital age.

But fast-forward to 2025, and the picture is more complex. While Bitcoin has survived and gained some institutional acceptance, the crypto landscape is littered with the remains of failed exchanges, collapsed tokens, and regulatory crackdowns. From the FTX scandal to the implosions of Terra and Celsius, Buffett’s central critique that most people don’t know what they’re buying rings painfully true. His partner Charlie Munger added, “It’s like someone inventing a new financial product and handing it to gamblers.” While Bitcoin may yet mature, Buffett’s refusal to engage isn’t rooted in ignorance it’s a choice. A reminder that investing isn't about participation it’s about understanding. As Buffett puts it, “Risk comes from not knowing what you’re doing.”

Each of these episodes Apple, airlines, and Bitcoin reinforce a key truth: Buffett’s superpower is not clairvoyance, but clarity. He waits until he fully understands the business. He doesn’t invest in trends, only in models he trusts. And when he changes his mind, it’s because the facts not the headlines have changed. His critics often mistake restraint for ignorance, and caution for weakness. But time after time, he proves that investing is not about being early it’s about being right for the long run.