Buffett's Berkshire takes stakes in four major airlines

[KCLarkin]

http://www.cnbc.com/2016/11/14/buffetts-berkshire-takes-stakes-in-four-major-airlines.html

 

Berkshire Hathaway's just released SEC filings show that the company has taken a stake in three of the four major airline companies — American Airlines, United Continental Holdings and Delta Air Lines.

 

But CNBC can report exclusively that Berkshire also has taken a stake in the fourth major carrier, Southwest Airlines.

 

Does anyone know if this was Buffett? Or T&T?

 

Even though I have 9% of my portfolio in an airline, I am shocked by this news. Anyone have any insight?

[DooDiligence]

"I have an 800 number now that I call if I get the urge to buy an airline stock. I call at two in the morning and I say: ‘My name is Warren and I’m an aeroholic.’ And then they talk me down.”

 

Did he go off the wagon?

[augustabound]

"I have an 800 number now that I call if I get the urge to buy an airline stock. I call at two in the morning and I say: ‘My name is Warren and I’m an aeroholic.’ And then they talk me down.”

 

Did he go off the wagon?

Probably Weschler or Combs.

[Ballinvarosig Investors]

It's almost certainly Tedd and/or Todd, the position sizes are tiny.

[Sionnach]

It's almost certainly Tedd and/or Todd, the position sizes are tiny.

 

+1

[KCLarkin]

Yes, but then why is Buffett commenting on their position in LUV? Bizarre.

[augustabound]

Yes, but then why is Buffett commenting on their position in LUV? Bizarre.

I just looked on CNBC and he said he disclosed the LUV stake because of his friendship with Herb Kelleher.

He would do that no matter who inside of BRK made the purchase I assume.

[Mephistopheles]

I remember Buffett specifically being asked about airlines on CNBC in the last several years given all of the consolidation. He said he still wouldn't invest unless it turns into a duopoly business.

[rb]

Did he forget to pay the bill for that 1-800 number? Did he not share the number with T&T?

[MarioP]

And it is strange that BRK bought 4 of them. That remember me when they bought multiples railroads to hide their interest in BNSF.

[rb]

Yea, I don't think BRK is in danger of buying Delta. But still, the purchase of airlines is over $1 billion that's not exactly insignificant.

[fareastwarriors]

Did he forget to pay the bill for that 1-800 number? Did he not share the number with T&T?

 

;D ;D ;D

[DooDiligence]

"If a capitalist had been present at Kitty Hawk back in the early 1900s, he should have shot Orville Wright. He would have saved his progeny money."

 

Buffett quote from a 2013 Forbes article (not an interview but I'm guessing if it'd been an interview he'd have confirmed the quote...)

 

This wouldn't be the first high mainenance capex, highly competitive, zero pricing power biz Berkshire has ever bought into...

[Guest longinvestor]

Did he forget to pay the bill for that 1-800 number? Did he not share the number with T&T?

 

Don't like this at all. D@&n, are T&T not going to learn from others' mistakes? Whatever happened to vicarious learning (Munger)?

[John Hjorth]

Perhaps a BRK employee met in at office one morning very tired after a long night in town, and a cascade of hypnic jerks caused the buy button unitentionally beeing pressed.

[frugalchief]

And it is strange that BRK bought 4 of them. That remember me when they bought multiples railroads to hide their interest in BNSF.

 

Exactly what I was thinking...

[Jurgis]

And it is strange that BRK bought 4 of them. That remember me when they bought multiples railroads to hide their interest in BNSF.

 

Exactly what I was thinking...

 

Buffett giving up on flying NetJets, gonna buy Ryanair whole and not take carry on.  8)

[SmallCap]

This when combined with the cubs winning the WS and the election debacle can only point to one thing... the end is near.    ;)

[alwaysinvert]

Did he forget to pay the bill for that 1-800 number? Did he not share the number with T&T?

 

Don't like this at all. D@&n, are T&T not going to learn from others' mistakes? Whatever happened to vicarious learning (Munger)?

 

http://www.cornerofberkshireandfairfax.ca/forum/berkshire-hathaway/bruce-greenwald-buffett-has-lost-his-mind/

[Kapitalust]

Did he forget to pay the bill for that 1-800 number? Did he not share the number with T&T?

 

Don't like this at all. D@&n, are T&T not going to learn from others' mistakes? Whatever happened to vicarious learning (Munger)?

 

http://www.cornerofberkshireandfairfax.ca/forum/berkshire-hathaway/bruce-greenwald-buffett-has-lost-his-mind/

 

rb had a great counterpoint to this in the Buffett/Berkshire - general news thread:

 

Well if I can be a bit of a dick, there's a reason why Bruce Greenwald is Bruce Greenwald and Warren Buffett is Warren Buffett.

 

 

[Jurgis]

rb had a great counterpoint to this in the Buffett/Berkshire - general news thread:

 

Well if I can be a bit of a dick, there's a reason why Bruce Greenwald is Bruce Greenwald and Warren Buffett is Warren Buffett.

 

But this is likely not Warren Buffett.

 

Will we have to rewrite the above as:

 

Well if I can be a bit of a dick, there's a reason why T&T are T&T and Warren Buffett is Warren Buffett.

 

?  ::)

[bci23]

When i saw this my first two thoughts were:

1. The major airlines must be soft colluding on prices and staying out of each others territories

2. consolidation in the industry and FAA/TSA regulations have made the barriers to entry so high going forward that there are unlikely to be new entrants into this industry.

 

I know nothing about the industry.

[rb]

My big thoughts about this are:

 

1. The airlines are also bought by Buffett's PAs. Are T&T tasked with trading in WB's PAs? Not sure either way. Other T&T stocks appear in the PAs.

 

2. They bought way more American stock than the other ones. This is induces worries.

[Jurgis]

OK, just for fun: what you guys gonna say if Buffett bags an airline with his elephant gun?  8)

 

I mean there are synergies: BRK is already a transportation company  ;D ; they could sell tickets for AAL, BNSF and NetJets depending on your travel plans...  ;D

[Mephistopheles]

My big thoughts about this are:

 

1. The airlines are also bought by Buffett's PAs. Are T&T tasked with trading in WB's PAs? Not sure either way. Other T&T stocks appear in the PAs.

 

2. They bought way more American stock than the other ones. This is induces worries.

 

How can you tell it's in his PA?