Warren Buffett, Chief Executive Officer of Berkshire Hathaway, announced the past February he is looking to buy an airline. As reported to the press in February, Berkshire/Bonnett has over $116 billion in cash. He is looking at possibly buying an airline.
Warren Buffett already is no stranger to having stock holdings in the airline industry. He already owns stock in four airlines. American, Delta, Southwest, and United airlines posted a 2% increase in their stock share price in February of this year, 2018.
If Buffett does pursue buying more stocks in airlines, he could buy United which would be his cheapest choice, with the airline having a current stock valve of about $20 billion. The highest stock valve goes to Delta Airlines, which has a current stock valve of $40 billion dollars. Brookshire/Bonnett with a currently about $126 billion cash on hand could buy both and still have over $60 left in cash assets.
The last big deal Hillshire/Buffett in the airline’s industry was the $37 billion purchase of aircraft components manufacturer, Precision Castparts in 2015. Just a few days ago, Brookshire/Bonnett added to its stake in Apple, diversifying itself further into the major technology manufacturer. Even though Buffett has shied away from technology stocks, this is a win-win so far for Brookshire/Bonnett since Apple reported the most rapid increase in their profits in two years.
Warren Buffett will probably buy some more time before he invests further into buying further stock in the airline industry. He seems to be on a winning streak with Apple. Even though Apple’s iPhone X did not meet it’s initial sales projections, the company is making billions on their offered services alone. I Cloud, the storage and backup service for its iPhone and other computer products it sells, has over a billion subscribers alone at the average tier of $2.99 per month.