David Kass Blog | Warren Buffett’s Bet on Airlines | Talkmarkets
Finance Professor at University of Maryland
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Dr. David Kass has published articles in corporate finance, industrial organization, and health economics. His teaching interests include financial restructuring and strategy, and investment management at the MBA level, as well as advanced financial management, business finance, and investments ... more

Warren Buffett’s Bet on Airlines

Date: Saturday, November 30, 2019 9:57 PM EDT

I am quoted in The Dallas Morning News: “Warren Buffett bet big on the big four airlines — and so far it is paying off”

“Buffett said the airline labor problems from previous years have been mostly resolved, you’ve had a consolidation and the airlines are less likely to have suicidal price competition,” said David Kass, a business professor at the University of Maryland who runs a Warren Buffett blog.

Earlier this year, there was speculation that Berkshire Hathaway would invest further by purchasing a majority stake in Southwest Airlines, but since then rumors have subsided, Kass said.

For now, Kass said Berkshire Hathaway looks intent on holding onto his shares in airline stocks — unless there are fundamental changes to the industry or one of the carriers.

“He prefers to own a company forever,” Kass said. “He’s owned Coca-Cola since 1988. The only time he would get rid of a company is if [it] ran into significant operating problems.”

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