Warren Buffett’s Berkshire Hathaway Inc. (BRK.A - Free Report) bought an eye-popping 43.2 million shares of Southwest Airlines in the fourth quarter. Berkshire’s new position in the low-cost carrier is valued at $2.2 billion, according to a federal regulatory filing published Tuesday, February 14.
Southwest Airlines Co. (LUV - Free Report) shares rose 0.89% in after-hours trading Tuesday, to $55.80. And the U.S. airline currently holds a Zacks Rank #2 (BUY). Southwest is the No. 4 airline in the U.S. in terms of traffic, but it holds the top spot for domestic flights.
The massive bet on Southwest signals a shift in Buffet’s decades-long stance on airlines being money-losers. Berkshire’s fourth quarter faith in Southwest comes after the Omaha, Nebraska-based company invested heavily in American Airlines Group, Inc. (AAL - Free Report) , Delta Air Lines, Inc. (DAL - Free Report) and United Continental Holdings, Inc. (UAL - Free Report) in the third quarter. It then added to all three of those positions in the fourth quarter.
In the first nine months of 2016, Berkshire bought a total of $5.2 billion worth of stocks, according to a regulatory filing.
Berkshire invested a total of about $9.3 billion in airlines at the end of 2016. Berkshire’s investment heavy fourth quarter seemingly signals the company’s confidence in the market and business climate, post election.
“We’ve, net, bought $12 billion of common stocks since the election,” Buffet said in a recent interview with Charlie Rose.
Top executives from major U.S. airlines, including Southwest CEO Gary Kelly, met with President Donald Trump last week. Despite Trump’s recent controversial travel ban from seven Muslim-majority nations, which saw airline stocks fall temporarily, it seems the airline industry could start to see an uptick.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Warren Buffett’s Berkshire Hathaway Inc. (BRK.A - Free Report) bought an eye-popping 43.2 million shares of Southwest Airlines in the fourth quarter. Berkshire’s new position in the low-cost carrier is valued at $2.2 billion, according to a federal regulatory filing published Tuesday, February 14.
Southwest Airlines Co. (LUV - Free Report) shares rose 0.89% in after-hours trading Tuesday, to $55.80. And the U.S. airline currently holds a Zacks Rank #2 (BUY). Southwest is the No. 4 airline in the U.S. in terms of traffic, but it holds the top spot for domestic flights.
The massive bet on Southwest signals a shift in Buffet’s decades-long stance on airlines being money-losers. Berkshire’s fourth quarter faith in Southwest comes after the Omaha, Nebraska-based company invested heavily in American Airlines Group, Inc. (AAL - Free Report) , Delta Air Lines, Inc. (DAL - Free Report) and United Continental Holdings, Inc. (UAL - Free Report) in the third quarter. It then added to all three of those positions in the fourth quarter.
In the first nine months of 2016, Berkshire bought a total of $5.2 billion worth of stocks, according to a regulatory filing.
Berkshire invested a total of about $9.3 billion in airlines at the end of 2016. Berkshire’s investment heavy fourth quarter seemingly signals the company’s confidence in the market and business climate, post election.
“We’ve, net, bought $12 billion of common stocks since the election,” Buffet said in a recent interview with Charlie Rose.
Top executives from major U.S. airlines, including Southwest CEO Gary Kelly, met with President Donald Trump last week. Despite Trump’s recent controversial travel ban from seven Muslim-majority nations, which saw airline stocks fall temporarily, it seems the airline industry could start to see an uptick.
Which Stocks are Zacks Experts Talking About?
Stocks in today's headlines may be tempting buys, but how would you like to peek behind the curtain to see all the best stocks Zacks' team of experts are recommending? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF and options moves...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). Click here for all Zacks trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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