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Warren Buffett's Berkshire makes surprise U.S. airline bet
15-11-2016, 01:43 PM. (This post was last modified: 17-03-2017, 08:06 PM by cyclone. Edit Reason: Added writer and date )
Post: #1
Warren Buffett's Berkshire makes surprise U.S. airline bet
Warren Buffett's Berkshire makes surprise U.S. airline bet

By Jonathan Stempel and Jeffrey Dastin | NEW YORK
Mon Nov 14, 2016 | 8:12pm EST

Warren Buffett's Berkshire Hathaway Inc on Monday said it has bought shares in the four biggest U.S. airlines: American Airlines Group Inc, Delta Air Lines Inc, Southwest Airlines Co and United Continental Holdings Inc.

The investments mark an unexpected reversal for Berkshire, which has avoided the airline sector for nearly two decades after a troubled investment in the former US Air Group, a forerunner to American.

They also expand Berkshire's bet on the U.S. economy, and in particular transportation. Berkshire already owns the BNSF railroad and the NetJets luxury plane unit, and in January paid $32.1 billion for aircraft parts maker Precision Castparts.

More details in http://www.reuters.com/article/us-invest...SKBN1392IS
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15-11-2016, 03:33 PM.
Post: #2
RE: Warren Buffett's Berkshire makes surprise U.S. airline bet
make America great again is starting with air transportation market share control!! Big Grin Big Grin Big Grin
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15-11-2016, 05:05 PM.
Post: #3
RE: Warren Buffett's Berkshire makes surprise U.S. airline bet
(15-11-2016, 01:43 PM)cyclone Wrote: Warren Buffett's Berkshire Hathaway Inc on Monday said it has bought shares in the four biggest U.S. airlines: American Airlines Group Inc, Delta Air Lines Inc, Southwest Airlines Co and United Continental Holdings Inc.

The investments mark an unexpected reversal for Berkshire, which has avoided the airline sector for nearly two decades after a troubled investment in the former US Air Group, a forerunner to American.

They also expand Berkshire's bet on the U.S. economy, and in particular transportation. Berkshire already owns the BNSF railroad and the NetJets luxury plane unit, and in January paid $32.1 billion for aircraft parts maker Precision Castparts.

More details in http://www.reuters.com/article/us-invest...SKBN1392IS

This is unexpected indeed coming from him who has been critical of airline business. But he also invested big time in IBM despite saying he doesn't know much about tech sector and has avoided tech companies. 

Interesting to note, Berkshire has just recently bought the aerospace parts manufacturing company Precision Castparts, perhaps he is now aiming for control of aerospace sector and wants to create synergy along that industry. Precision castparts 3/4 revenue is from aerospace, 1/4 is from energy sector. 

Remember how he acquired the reinsurance/insurance company to insure his own stable of companies at lower cost in the past.

Maybe next target will be Boeing shares lol...
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