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FLYLOW22
08-09-2018, 03:42 PM
https://www.fool.com/investing/2018/08/09/will-berkshire-hathaway-buy-southwest-airlines.aspx


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labbats
08-09-2018, 04:18 PM
Although Buffett eventually made money on this investment, he almost lost all of it as US Air neared bankruptcy in the interim. Buffett would not have invested in retrospect. As he says, ĎStay away from the airline industryí. He shuns the airline industry in general, as it is a high fixed cost and highly competitive industry that has on the whole made negative returns for its investors.

FLYLOW22
08-09-2018, 06:22 PM
Although Buffett eventually made money on this investment, he almost lost all of it as US Air neared bankruptcy in the interim. Buffett would not have invested in retrospect. As he says, ĎStay away from the airline industryí. He shuns the airline industry in general, as it is a high fixed cost and highly competitive industry that has on the whole made negative returns for its investors.



But therein lies the rub.

SWA hasnít lost money since when?




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at6d
08-09-2018, 06:38 PM
I donít like it. We donít want to be NetJets/Signature Aviation.

We have lots of cash in the bank. I think that would disappear.

e6bpilot
08-09-2018, 10:27 PM
Not going to happen. A couple of analysts basically plagiarized a Forbes article from a couple of years ago. Analysts in big finance are not top level power brokers who can predict these kinds of things, they are generally very junior in the company, many times right out of college with just a bachelors or a wet masters degree. BH will not pay for an airline right now. The industry is booming. Wait a few years.
All the reasons the article listed for SWA to be interested in brokering such an arrangement are lunacy. SWA is sitting on a pile of cash and is currently in the middle of a growth and modernization initiative that is going to take years to complete.
Itís fun to read about stuff like this, but it just isnít going to happen.

tm602
08-10-2018, 03:45 PM
I donít like it. We donít want to be NetJets/Signature Aviation.

We have lots of cash in the bank. I think that would disappear.

Why? Buffet is a nice grandpa figure who loves Dilly Bars:rolleyes:
Seriously now, you don't want him. I'm serious. BK companies never, ever been in the Top 50 to work for. Perhaps even the Top 100 even.
I work for him now at his fractional, and I'd sooner yank my application from SWA than continue to work for him. He is intrinsically evil and greedy and will squash the good culture SWA enjoys.