I must say, if I had billions of dollars I could invest in any company, an airline wouldn’t be one of them… well, at least at this very moment.
In this post:
Berkshire Hathaway returns to airline investing
The stock market has been absolutely wild as of late, at least for certain sectors. When it comes to investment oddities, one of the big stories recently has been how Berkshire Hathaway has been sitting on a record $400 billion in cash, which otherwise counters the industry trend.
Berkshire Hathaway founder Warren Buffett (who is now 95 years old, and is still Chairman, but no longer CEO) is known for having some amazing insights into the market over the years, so many have thought “well clearly he knows something other people don’t.”
Yesterday was the deadline for institutional investment firms to submit their form 13Fs, disclosing their investments for the previous quarter (January through March of 2026). Berkshire Hathaway’s disclosure indicates that the firm purchased 39,809,456 Delta shares in the first quarter, at a cost of around $2.65 billion. So that implies that the company purchased shares at around $66.50 each, and Delta is now Berkshire Hathaway’s 14th biggest holding.
Delta’s stock is currently just over $70, and is up a bit after hours, due to the Berkshire Hathaway news.
Berkshire Hathaway has a fascinating history with investing in airlines. The company completely stopped investing in airlines just weeks after the start of the coronavirus pandemic, in early 2020. The company previously had huge a stake of around $4 billion in American, Delta, Southwest, and United, and it sold them off at a huge loss, clearly thinking the industry had fundamentally shifted, or that money could better be invested elsewhere.
Even prior to that, Buffett had been very critical of investing in airlines. For example, in a 2007 letter to shareholders, Buffett wrote that “The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money. Think airlines.” That’s only one of the many comments he made about what bad investments airlines are.
I know Buffett has long been a fan of investing in American companies, but it seems he (or at least now Berkshire Hathaway) can’t stay away from airlines.
Congrats to Delta, but I find this to be kind of wild
You’ll constantly hear airline executives talk about how Wall Street just doesn’t understand the airline industry, and they suggest that airline stocks are wildly undervalued. It doesn’t matter which airline it is, or what part of the cycle we’re in, they’ll almost always say that.
It reminds me of when in 2018, former American CEO Doug Parker talked about the company’s stock is “so undervalued it defies logic,” while the stock was trading in the high $40s. At the same time he told others how undervalued the stock is, Parker also sold the highest number of his own shares to date. That was a smart move, because in the years since, the carrier’s stock has gone down by more than two-thirds.
The thing is, I get that airline executives do the best they do, and their job is to increase the company’s stock price. But it doesn’t change the reality that airlines are really tough businesses, even under the best of circumstances. It’s just an impossibly difficult industry.
Of course I’ll defer to Berkshire Hathaway’s expertise over mine when it comes to investing, but I certainly find it surprising to buy airline stocks when they’re near all time highs. And I’d support my argument by simply quoting everything Buffett has said over the years about investing in airlines. 😉
Now, there’s certainly money to be made with investing in airlines in the short term. JPMorgan airline analyst Jamie Baker will often reference the “down 30 in 30” rule, whereby when airline stocks fall 30% or more in 30 days, they then go up at least 50% within 180 days in a vast majority of situations. I don’t want to misquote him, but I believe their number is a 70%+ chance of a 50%+ return, based on historical trends. Someone correct me if I got that wrong.
Of course this is no guarantee of future performance, and this is not investment advice. My point is simply to say that I think the people who make the most money trading in the airline industry are those who buy the dips. My general observation is that nowadays for the “healthy” airlines, stocks recover pretty quickly, as they’re typically among the first to be impacted by market volatility.
Bottom line
Berkshire Hathaway has disclosed that it has purchased nearly 40 million Delta shares in the first quarter of 2026, at a cost of around $2.65 billion. This means Delta is now Berkshire Hathaway’s 14th biggest investment, and the company owns a little over 6% of Delta, with an average acquisition cost of around $66.50 per share.
While Buffett has taken stakes in airlines over the years, he has consistently talked about what a bad and risky investment they are. So it’s interesting to see the company once again get into airline investing. Congrats to Delta, because it’s also noteworthy how the company only chose a major position in one airline, and didn’t go with Southwest, United, etc.
I get Berkshire Hathaway’s concerns about some of the tech stock booms being a bubble, as that’s a very real possibility. But if we do see that sector crash, that also has major implications for premium airline demand, given where so much money in the K-shaped economy is coming from.
What do you make of Berkshire Hathaway’s Delta investment?
I am guilty as charged …. guilty of not checking the so called ‘facts’ which Walter Mitty Dunn, has been posting for months. For when one attempts to verify his ‘facts’ by independent means, they do not stand close scrutiny.
A pinch of salt or false news report, that is the question!
I have played on the internet long enough to know that there are plenty of people that want to see DL dethroned from its position of leadership in the industry.
Pilot Paul couldn't pass a financial literacy class if his life depended on it.
He can get google AI to spit out a list of profit margins by airline but that is hardly financial analysis - and more importantly I never said that DL was...
I have played on the internet long enough to know that there are plenty of people that want to see DL dethroned from its position of leadership in the industry.
Pilot Paul couldn't pass a financial literacy class if his life depended on it.
He can get google AI to spit out a list of profit margins by airline but that is hardly financial analysis - and more importantly I never said that DL was generating the industry's highest profit margins.
DL is generating the most revenue of any airline in the world and has the highest market cap and its stock is leading US industry indices.
Let's be clear that pilot paul can't stand that BRK chose DL but they did.
choosing DL means that BRK is rejecting other airlines.
It isn't at all odd why BRK chose DL but some people will remain hopelessly clueless.
Just think that even a $2500 investment could have resulted in a $1000 profit if someone had invested in DAL stock a year ago.
But some people are so beholden to their preconceived notions that that they miss good money.
DAL stock is not a short term trading stock. BRK understands it; Ben and others may not. Just means more profit for those that do understand how to invest in financial successes - which just might involve a very select few airlines.
Tim,
I have played on the internet long enough to know that NO ONE GIVES a F if DL is dethroned from its position of leadership in the industry or not, no one except you.
And let's debunk your fluff a bit.
"choosing DL means that BRK is rejecting other airlines."
Nope, investment isn't binary. BRK can invest or not invest in anything. Doesn't mean they rejected anything. It's portfolio management, if you...
Tim,
I have played on the internet long enough to know that NO ONE GIVES a F if DL is dethroned from its position of leadership in the industry or not, no one except you.
And let's debunk your fluff a bit.
"choosing DL means that BRK is rejecting other airlines."
Nope, investment isn't binary. BRK can invest or not invest in anything. Doesn't mean they rejected anything. It's portfolio management, if you even know what that means.
"It isn't at all odd why BRK chose DL but some people will remain hopelessly clueless."
It's odd why BRK didn't "think that even a $2500 investment could have resulted in a $1000 profit" people at BRK must be stupid to reject easy $1000 according to Tim. So are those smart people making billions at BRK clueless when DL was cheaper? But Tim sees it, LOL.
"DAL stock is not a short term trading stock. BRK understands it; Ben and others may not."
BRK has it's reasons, which nobody outside knows. Not even you Tim. BRK understands it but YOU don't. So stop guessing their reason. It's part of their portfolio management, if you even know what that means.
Hint: short term trading is also part of managing portfolio.
For F sake Tim, BRK also invested in Macy's, yes that brick and mortar store that has been closing stores in a market that many of their competitors already went bankrupt.
But BRK exited Amazon.com, yes that game changing LEO internet provider that Timmy brag so much.
There's a reason why BRK is worth trillions and you are worth nothing Tim.
And THAT'S A FACT.
you desperately can't stand that BRK chose DL and they don't at all fit the profile of a trader but rather an investor.
and, as usual, you resort to childish cutdowns because you can't accept that I am right.
When BRK invests in other airlines, then we can discuss that as well, but for now, they see potential in DAL for structural reasons that other airlines do not have.
Yep, this confirms Timmm has no idea what portfolio management is.
Reinforce why BRK is worth trillions and you are worth nothing.
BRK has gotten so big that they cannot be very activist anymore..for liquidity reasons and such, they have got to buy blue chips and more or less replicate the broader market.
There are actually studies on this. As they have grown, their allocation has become much closer to a neutral market portfolio. There's no point looking at them if you want to see something new or different. They have not beaten their benchmark by any kind of sizable margin in years.
They aren't buying DAL stock to be an activist investor; they are buying because DAL is delivering better financial results than just about every other airline in the world.
DAL has easily outperformed not just other airlines but also a number of broader market indices; DAL stock has performed as well as the tech heavy NASDAQ over the past year.
BRK, like every other investor, looks for good solid companies in which it can...
They aren't buying DAL stock to be an activist investor; they are buying because DAL is delivering better financial results than just about every other airline in the world.
DAL has easily outperformed not just other airlines but also a number of broader market indices; DAL stock has performed as well as the tech heavy NASDAQ over the past year.
BRK, like every other investor, looks for good solid companies in which it can invest.
As hard as it is for some people to accept, BRK chose DAL because of well it is run as a business and as an airline; BRK believes that DAL has the potential to outperform because of the structural advantages that DAL continues to have and which will only increase in 2026 and 2027.
There is nothing odd about being able to choose successful companies either as investments or as passengers or employees
"They are buying because DAL is delivering better financial results than just about every other airline in the world."
Current operating profit margins, top 30 airlines worldwide:
Rank / Airline / Profit margin:
1 Bangkok Airways 26.15%
2 Air Arabia 24.23%
3 Copa Holdings 21.43%
4 Cargojet 20.98%
5 EVA Air 17.38%
6 LATAM Airlines 16.73%
7 InterGlobe Aviation (IndiGo) 16.68%
8 Ryanair 16.65%
9 Pegasus...
"They are buying because DAL is delivering better financial results than just about every other airline in the world."
Current operating profit margins, top 30 airlines worldwide:
Rank / Airline / Profit margin:
1 Bangkok Airways 26.15%
2 Air Arabia 24.23%
3 Copa Holdings 21.43%
4 Cargojet 20.98%
5 EVA Air 17.38%
6 LATAM Airlines 16.73%
7 InterGlobe Aviation (IndiGo) 16.68%
8 Ryanair 16.65%
9 Pegasus Airlines 15.61%
10 Spring Airlines 15.56%
11 Volaris 15.07%
12 Singapore Airlines 14.99%
13 Turkish Airlines 14.11%
14 International Consolidated Airlines (British Airways , Iberia, Air Europa, Vueling, Level and Aer Lingus) 14.08%
15 SkyWest 13.40%
16 Grupo Aeromexico 12.40%
17 China Airlines 11.24%
18 Qantas Airways 10.78%
19 Cathay Pacific 10.73%
20 Aegean Airlines 10.23%
21 Vietnam Airlines 10.12%
22 Delta Air Lines 9.76%
23 ANA Holdings 8.69%
24 Japan Airlines 8.61%
25 Enter Air 8.19%
26 Hainan Airlines 8.06%
27 VietJet Aviation 7.99%
28 United Airlines Holdings 7.28%
29 Korean Air Lines 6.46%
30 Lufthansa 6.23%
Surely, you recognize that investors look at the future, not the past. A quick look at the list you provided shows how many of those airlines operate in countries that are being severely affected by jet fuel cost and availability. It is very possible that Delta will make more in absolute profits than every other airline on that list combined in 2026. Not only does Delta have massive structural advantages with the refinery and the...
Surely, you recognize that investors look at the future, not the past. A quick look at the list you provided shows how many of those airlines operate in countries that are being severely affected by jet fuel cost and availability. It is very possible that Delta will make more in absolute profits than every other airline on that list combined in 2026. Not only does Delta have massive structural advantages with the refinery and the MRO, but the amex relationship will only continue to grow.
I know it hurts to admit that BRK did not invest in your airline, but they didn’t gain the welfare have because they listen to people like you
A lot of the European carriers have hedged on Jet Fuel. Indeed, IAG have JF stored all across the UK. The hedging strategy is paying dividends right now and has heavily insulated European carriers from the significant spike in JF, so I am not sure that their profit margins will take as much of a hit as you indicate.
Of course, Asian carriers have not typically hedged on JF so their margins may take a beating.
Tim : "Surely, you recognize that investors look at the future, not the past."
Then there is this idiot who argues against Tim using the past.
Idiot:
"DAL stock is up 40% over the past year"
"DL generated 50% more profits than UA in 2025."
Wait, that idiot is the same hypocrite person.
personal attacks when you can't address the issue at hand.
Newsflash. BRK chose to invest in DAL, not UAL.
Case closed for everyone except you that continues to think that UA is a superior airline when actual facts and data say otherwise.
Vinod,
many European airlines have hedged fuel but those hedges will decrease the longer the Iran conflict continues.
and the issue is that the cost of living will continue...
personal attacks when you can't address the issue at hand.
Newsflash. BRK chose to invest in DAL, not UAL.
Case closed for everyone except you that continues to think that UA is a superior airline when actual facts and data say otherwise.
Vinod,
many European airlines have hedged fuel but those hedges will decrease the longer the Iran conflict continues.
and the issue is that the cost of living will continue to increase which hurts travel.
BRK could have invested in Euro airlines but most are primarily listed on Euro exchanges.
BRK bought DAL which is likely to perform the best of airlines in the Americas.
BRK buys shares that are cheap and from companies that have pricing power. The straight of Hormuz situation has been an opportunity to raise fares while having guaranteed access to jet fuel as USA is an oil producer, all the while airlines stock being down. Delta is well positioned to face this kind of headwinds thanks to owning a refinery.
I don't see this as a long term investment this is just speculative, they'll...
BRK buys shares that are cheap and from companies that have pricing power. The straight of Hormuz situation has been an opportunity to raise fares while having guaranteed access to jet fuel as USA is an oil producer, all the while airlines stock being down. Delta is well positioned to face this kind of headwinds thanks to owning a refinery.
I don't see this as a long term investment this is just speculative, they'll sell off as soon as the share price matches the profit they'll turn flying in the summer when the euro and Asia carriers are out of fuel.
If you have to invest in airlines right now Delta is the place to go. Does not mean it's a good long term investment. Speculatively, in April, it made sense.
I would even argue that it's not a good investment anymore now that the cat is out...
let's be clear.
the only thing "odd" is that some people including Ben cannot comprehend that
BRK chose DAL because DAL is performing at the top of the global industry and has the potential to, once again, extend its lead even further because of structural advantages which no other airline can match even while he and Gary trot out nonsense about investing in airlines.
BRK didn't invest in "airlines" but invested in DAL...
let's be clear.
the only thing "odd" is that some people including Ben cannot comprehend that
BRK chose DAL because DAL is performing at the top of the global industry and has the potential to, once again, extend its lead even further because of structural advantages which no other airline can match even while he and Gary trot out nonsense about investing in airlines.
BRK didn't invest in "airlines" but invested in DAL - to the exclusion of a whole lot of other airlines.
It clearly hurts for some to recognize that "their airline" has been rejected in favor of someone else.
"is that some people including Ben cannot comprehend that" --> is there a reason you need to be so obnoxious here towards Ben?
I'm no more obnoxious to Ben than anyone else - but he repeatedly keeps throwing his opinions which are quite separated from actual facts
and I said the same thing about Gary who blabbed about Buffett not investing in airlines; BRK didn't invest in "airlines" .. they did invest in Delta Air Lines. and no that is not about the way Delta spells its name but rather than BRK invested so far in just one...
I'm no more obnoxious to Ben than anyone else - but he repeatedly keeps throwing his opinions which are quite separated from actual facts
and I said the same thing about Gary who blabbed about Buffett not investing in airlines; BRK didn't invest in "airlines" .. they did invest in Delta Air Lines. and no that is not about the way Delta spells its name but rather than BRK invested so far in just one airline company.
Anyone, including Ben, who has actually looked at financials including stock price movements can see that it isn't odd at all that a blue chip investor would choose to invest in Delta.
and when you or Ben or anyone else factors in the structural advantages which DL has including high market share in its top markets plus the Amex relationship and Delta Tech Ops on top of the refinery, DL is very likely going to outperform the industry this year and into 2027.
and those that do not want to hear about financial strength of airlines will miss why DL will be able to grow more and faster than other airlines.
Financial strength does matter and in this case, it will give DL to do things other airlines simply cannot.
@tim if you want to be obnoxious to all the people who go at you in the comments, I can understand that. But Ben has been nothing but respectful to you and continues to let you post your opinions freely on his blog.
Nothing wrong with disagreeing with him but I really don't understand why you need to personally insult him when he has been largely respectful to you.
When you go after ben you just make yourself look like a petulant child.
@al it’s because Widdle Timmy D is a very pathetic individual who has tied up his entire self worth in Delta, and can’t accept even a dusting of criticism of the airline. SAD!
in contrast, of course, to people like you that have your entire self wrapped in "your airline" and can't stand to hear or read that "someone else's" airline actually does something better than yours.
We get precisely where your identity is wrapped up
"DAL is performing at the top of the global industry" - not by a long shot. Not at the top globally, not at the top in North America, and not even at the top in just the US (Skywest has higher profit margins). Delta currently in the coveted 22nd spot globally.
Data to prove it? Current operating profit margins, top 30 airlines worldwide:
Rank / Airline / Profit margin:
1 Bangkok Airways 26.15%
...
"DAL is performing at the top of the global industry" - not by a long shot. Not at the top globally, not at the top in North America, and not even at the top in just the US (Skywest has higher profit margins). Delta currently in the coveted 22nd spot globally.
Data to prove it? Current operating profit margins, top 30 airlines worldwide:
Rank / Airline / Profit margin:
1 Bangkok Airways 26.15%
2 Air Arabia 24.23%
3 Copa Holdings 21.43%
4 Cargojet 20.98%
5 EVA Air 17.38%
6 LATAM Airlines 16.73%
7 InterGlobe Aviation (IndiGo) 16.68%
8 Ryanair 16.65%
9 Pegasus Airlines 15.61%
10 Spring Airlines 15.56%
11 Volaris 15.07%
12 Singapore Airlines 14.99%
13 Turkish Airlines 14.11%
14 International Consolidated Airlines (British Airways , Iberia, Air Europa, Vueling, Level and Aer Lingus) 14.08%
15 SkyWest 13.40%
16 Grupo Aeromexico 12.40%
17 China Airlines 11.24%
18 Qantas Airways 10.78%
19 Cathay Pacific 10.73%
20 Aegean Airlines 10.23%
21 Vietnam Airlines 10.12%
22 Delta Air Lines 9.76%
23 ANA Holdings 8.69%
24 Japan Airlines 8.61%
25 Enter Air 8.19%
26 Hainan Airlines 8.06%
27 VietJet Aviation 7.99%
28 United Airlines Holdings 7.28%
29 Korean Air Lines 6.46%
30 Lufthansa 6.23%
It clearly hurts for some to recognize that "facts" undermine their propaganda about their favorite airline.
BRK should have bought airline stocks instead of selling them during the pandemic.
clearly you don't know that the reason why BRK sold its share in airlines is because Buffett knew that airlines needed government help to get through the pandemic and that probably would not have happened if they BRK was still an owner of the US airlines.
The bigger question is how DL managed to receive less money than AA and UA during covid and return to being so much more successful of an airline
Turns out Berkshire realized they can get Amex economics at 5x eps.
Haha, I love all the knowledge here. Why didn’t the best investor of all time just check with this crowd before the investment?
DL has a refinery, which hedges fuel prices, and a non-union work for some employees (pilots and mechanics being the biggest exception). They, along with UA, have the highest exposure to international travel. Their maintenance department does wonderful things with old planes they buy, until they break down with you on them.
Airline stocks are known as trading vehicles. You buy them to sell them in some time frame. If Berkshire sees an upswing in...
DL has a refinery, which hedges fuel prices, and a non-union work for some employees (pilots and mechanics being the biggest exception). They, along with UA, have the highest exposure to international travel. Their maintenance department does wonderful things with old planes they buy, until they break down with you on them.
Airline stocks are known as trading vehicles. You buy them to sell them in some time frame. If Berkshire sees an upswing in airline stocks, it would make more sense to buy shares of something that can improve the most, like AA, rather than something that is already well run.
As I recall, DL does not hedge its crude oil. Should refinery prices fall, they will take it in the neck in terms of losses on fuel.
There is no hedge on jet fuel abroad either in terms of cost or availability. I can see a scenario where foreign governments sell fuel to domestic airlines before providing for foreign carriers.
I find the concept of a blue chip airline stock to be an oxymoron.
WB as well as shareholders would have been better off if he had left his money in Apple instead of buying Delta
Yes he sold Apple around 200. Now just under 300. Left hundreds of millions on the table.
He’s 95. Is it really even him making these moves? I’d rather follow Jimmy Buffet’s advice at this point… a cheeseburger in paradise would be nice!
Buffett’s retired.
BRK has always been about compounders and monopolies. That is why Munger always tried to veto airlines. I gotta be honest: I don’t see how Delta outperforms other A&D (Airbus, Safran, Boeing, Rolls Royce, TransDigm, etc.) or banks for the next 3-5 years.
well, let's see.
DL has higher market concentration in its major markets than AA or UA does.
DL has engine maintenance contracts on every new generation engine that is in service with US airlines.
DL has one of the largest MROs in the world and that business is expected to grow much faster than the US airline business.
I suspect BRK sees that DL does have so many more moats (a key Buffett theme) than...
well, let's see.
DL has higher market concentration in its major markets than AA or UA does.
DL has engine maintenance contracts on every new generation engine that is in service with US airlines.
DL has one of the largest MROs in the world and that business is expected to grow much faster than the US airline business.
I suspect BRK sees that DL does have so many more moats (a key Buffett theme) than any other airline - any where in the world - and is turning that more and more into profits.
and those that don't want to hear about profitability of airlines clearly don't understand that DL's high level of profitability has allowed them to grow more and more in highly competitive markets and expand their network as no other airline in the world has been able to do.
DAL has built new hubs over the past 20 years in NYC, BOS, LAX and SEA; no other US airline has come anywhere close to that much organic growth.
Clearly, profitability does provide the ability to grow which becomes an even strong platform for future growth.
Tim makes great arguments on why to become a Delta investor.
But with the delayed lie flat seats, no true streaming Wi-Fi (LEO) until deep into 2028 at the earliest and only going on half the fleet, wide body orders that won't arrive for several years to come, cancelled flights as pilots manipulate the scheduling system, and reduced service on shorter routes ... there is little reason to be a Delta passenger.
If you want...
Tim makes great arguments on why to become a Delta investor.
But with the delayed lie flat seats, no true streaming Wi-Fi (LEO) until deep into 2028 at the earliest and only going on half the fleet, wide body orders that won't arrive for several years to come, cancelled flights as pilots manipulate the scheduling system, and reduced service on shorter routes ... there is little reason to be a Delta passenger.
If you want to buy an airline STOCK, buy Delta. If you want to buy an airline TICKET, buy one from anyone BUT Delta.
except that ALL of those types of things happen all the time with every airline and yet Delta still manages to lead US airlines in profitability and leads the global airline industry in market cap and revenue.
maybe, just maybe, the things that you focus on really don't matter that much while other things do
More like ‘Greg Abel’s Berkshire Hathaway’. Warren Buffett retired.
Exactly. The board chairman doesn't make investment decisions. The board hires the decision makers. Buffett is no longer in charge, and bought no airline shares in his final years as CEO. He liked railroads.
Wish he would have donated One Billion to Spitit. Oh well.
I hate to say it. But UA is poised better than both DL and definitely AA for the future.
So this investment is a surprise.
Thank goodness you’re not the one investing! Other than some splashy routes, United is not the financial machine in the U.S. that will always be Delta. Delta leads United by $15B in market capitalization and way less debt.
and DL generated 50% more profits than UA in 2025.
the sad part is that so many UA fans really are incapable of seeing UA for what it really is.
What Gary said above.
If you want to buy an airline STOCK, buy Delta. If you want to buy an airline TICKET, buy from another airline.
"But UA is poised better than both DL"
No idea how you came to that conclusion.
United has been improving its way toward Delta, by having lower costs and almost similar revenue. Now, with the closing of its labor contracts, United's costs are going to rise, but there's been no equivalent rise in revenue.
United is also more exposed to international market cooling than Delta is, and has nearly double Delta's debt.
The refinery probably had something to do with investment and lack of union contracts for some groups. Debt is also lower. But, Delta needs to upgrade outdated IT systems. Sure that was in BH calculations.
DAL stock is up 40% over the past year, outperforming not only all other large US airlines but also the DJIA and the S&P500 and on track w/ the tech heavy NASDAQ
With the refinery likely to deliver $1 billion per year in fuel cost savings and the Amex relationship continuing to grow, Delta is very likely to come out of the next couple of years a much stronger airline and Berkshire knows that
It...
DAL stock is up 40% over the past year, outperforming not only all other large US airlines but also the DJIA and the S&P500 and on track w/ the tech heavy NASDAQ
With the refinery likely to deliver $1 billion per year in fuel cost savings and the Amex relationship continuing to grow, Delta is very likely to come out of the next couple of years a much stronger airline and Berkshire knows that
It doesn’t matter what the airline industry as a whole does; it only matters what Delta does and that is who they are investing in
Means BRK should have invested when it was 40% less not when it's 40% more expensive, Tim Dumb.
BRK investing now means they think the stock still has more room for growth yes?
You can cry about not investing earlier, but the reality is as long as the stock continues to grow, then it doesn't really matter
Julia gets it.
Eskimo suffers from frozen brain syndrome. again
No Tim, you still don't get it.
Julia is right (but Tim isn't), it has potential that's why BRK invested now.
Crying about investing early or not is exactly what you're doing Tim.
If it was good, BRK wouldn't wait and overpay it by 40%, they would have bought it when it was much cheaper.
This is exactly why you suck as an investor or analyst and suck as a fluffy Delta fanatic.
I'll butcher the quote, but Buffett once said, "If someone had been at Kitty Hawk and shot down Wilbur and Orville's airplane, he would have done a great service for capitalists everywhere."
Delta owns a refinery, one of only three in the mid Atlantic region. Could this be what makes it attractive?
It could be a play on fuel availability. It isn't just gas prices. At some point, jet fuel will be a commodity that can't be obtained at any price in certain parts of the world. If you own a refinery in the rust belt, you can at least run part of an operation out of ATL, MSP, and DTW with your fuel. We have crude, but getting it to the right refineries to make the...
It could be a play on fuel availability. It isn't just gas prices. At some point, jet fuel will be a commodity that can't be obtained at any price in certain parts of the world. If you own a refinery in the rust belt, you can at least run part of an operation out of ATL, MSP, and DTW with your fuel. We have crude, but getting it to the right refineries to make the products that you need will be really hard soon. Auto parts stores are signaling that certain types and weights of motor oil may be completely unavailable for a time.
In a world where you can fly a decent schedule but your competitors cannot, you will win big. Huge amounts of demand destruction, of course, but the remaining demand will be very price insensitive.
The refinery provides 75% of DL's fuel needs either through direct jet fuel that is sent to DL's NE operations including NYC and indirectly through swaps for non-jet fuel products that the refinery produces for jet fuel in other parts of the country.
The jet fuel crack spread is still highly elevated - at least $1/gallon which means the refinery should be able to provide savings well into the future.
If I remember correctly, that refinery sources oil from the older Pennsylvania wells and has excellent contracts. Also it survived some hellish storms that forced shutdowns both in NJ and Delaware. It might not be the largest, but it seems oddly more stable.
Oh yes , "airline shares" are so "positive" . Ask the PanAm and TWA shareholders .
The major US airlines are among our best and most important companies (despite all the armchair critics) but they are prone to very visible out-of-nowhere "disasters" that are outside their control. Consider, for example the Covid hysteria and today's Iranian oil spike. This is why they are so volatile and, arguably, undervalued. That said, unless you're just going to buy tech stocks at any price point (and history suggests you could), it makes sense for...
The major US airlines are among our best and most important companies (despite all the armchair critics) but they are prone to very visible out-of-nowhere "disasters" that are outside their control. Consider, for example the Covid hysteria and today's Iranian oil spike. This is why they are so volatile and, arguably, undervalued. That said, unless you're just going to buy tech stocks at any price point (and history suggests you could), it makes sense for Berkshire to look at other opportunities.
"Arguably undervalued" ? Ask the Spirit employees .
Tim Dumb will tell you why Delta can never go down in value "over and over again "
Airline stocks are often a good hedge against fuel prices - if fuel goes down, airline stocks go up. Assuming with volatility due to Iran War, BH is doing that here.
"if fuel goes down" ? ha-ha .