The reaction to Qantas’ results has been universally savage. Everyone agrees the airline is doomed, that sensible investors should avoid the company and avoid the sector. No less than Warren Buffett himself has proclaimed he would never buy an airline. Pessimism and discomfort surround the business. This is, in other words, perfect hunting ground for contrarian investors.
Negative headlines and popular scorn shouldn't be automatic buy triggers but they should pique our interest. Sure, Qantas is a poor quality business in a lousy industry. But there is a price for everything.