Warren Buffett Airlines Investments

Warren Buffett is the investor who is noted for his money making investment skills. Buffett started his investment business in 1963 by taking controlling interest in Brookshire Hathaway, a failing textile company. Soon after Buffett took control of Brookshire Hathaway he took the company out of the textile business and turned into a very successful and highly profitable investment firm. By 1964, Buffett was a millionaire. Today, he is the second wealthiest person in the world, with a net worth of 85.6 billion dollars.

Warren Buffett Increases Hillshire/Buffett Investments in Airlines
Five years ago, Warren Buffett referred to the airline industry as a death wishes for potential investors. Fast forward to the years 2017 and 2018, and Warren Buffett has definitely taken a different attitude with airlines industry. As early as last year, Brookshire/Bonnett bought $2.2 billion dollars of Southwest Airlines stock. In addition to the Southwest Airlines stock, Berkshire/Bonnett owns $2 billion worth of American. United Airlines, and Delta.

Why Buffett Feels The Airlines Are Currently A Good Investment
The price of crude oil in half of the cost it was in 2013. This is the largest expense of an airline. This has caused jet fuel to be considerably lower than it was in 2013. American, Delta, United, and Southwest Airlines have made unprecedented profits the past five years. All the major airlines have added new technology and aircraft to their airlines. In 2013, three out of four airlines companies were having deep financial issues.

Everyone knows Warren Buffet’s expertise in picking great stock picks. However, Buffett has a sense of following changes in the industry and knowing when to buy and when to sell. That’s why he is a man worth billions today. Buffett at 83 does not appear to slowing down and is as sharp as ever.

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