Will Buffett buy AA or SWA?
02-23-2017, 12:16 AM
#21
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Originally Posted by badflaps
Just how old is Buffett?
02-23-2017, 04:33 AM
#22
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Originally Posted by Macjet
He owns BNSF which is far more important to the economy than AA.
BNSF and all the railroads are hurting right now.
The coal market, booming just a couple of years ago, has practically dried up.
Continued low oil prices are killing the industry, too.
Sure, it's cheaper to run the locos, but it's also cheaper to run trucks. And it's also cheaper to import foreign oil to East Coast ports at these prices than to extract and transport domestic oil across the country, especially with the more stringent standards for tank cars after several high-profile accidents.
And the green light for the two big oil pipelines will see hundreds of idle tank cars parked on sidings, along with the empty coal hoppers that are there now.
So, one wonders if that is why Mr. Buffett is looking at other transportation sector options.
02-23-2017, 04:53 AM
#23
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02-23-2017, 05:14 AM
#24
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Originally Posted by DrJekyll MrHyde
86 years old, I was just thinking the same thing. His "long game" can't be as long as it once was, he hasn't much time left. Sometimes it makes you wonder if these old investors will take one final swing for the fence!
02-23-2017, 06:18 AM
#26
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Originally Posted by Flyby1206
It's going to be SWA. Largest domestic carrier, free cash flow, solid financials, he loves Herb, etc etc.
Buffet doesn't buy companies to turn them around, he buys companies that are already stable.
Buffet doesn't buy companies to turn them around, he buys companies that are already stable.
02-23-2017, 10:52 AM
#27
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Originally Posted by jcountry
Doubt it.
People need to get places to facilitate commerce-just as coal and iron ore do.
The economy would take a massive dump if either one were to falter.
Apples and oranges-but AA is the world's largest airline-saying that it is less important than some airline doesn't make it so.
People need to get places to facilitate commerce-just as coal and iron ore do.
The economy would take a massive dump if either one were to falter.
Apples and oranges-but AA is the world's largest airline-saying that it is less important than some airline doesn't make it so.
02-23-2017, 12:00 PM
#28
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Originally Posted by jcountry
I doubt he could afford either. (Or at least wouldn't want to risk that big of a bet.)
I doubt regulators would be cool with any private fund controlling such a large share of the US market.
I'd look for him to possibly buy something like Jet Blue.
I doubt regulators would be cool with any private fund controlling such a large share of the US market.
I'd look for him to possibly buy something like Jet Blue.
Lol
02-23-2017, 12:13 PM
#29
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Berkshire Hathaway has $84 Billion dollars in cash.
Market Caps for airlines:
AA $24Bil
DL $37Bil
UA $24Bil
WN $35Bil
They could offer double the current market price for any of the Big 4 and still have Billions left over without having to take on any financing debt to make the purchase.
If they were willing to take on a small amount of debt, then Berkshire could buy all 4 of them.
Market Caps for airlines:
AA $24Bil
DL $37Bil
UA $24Bil
WN $35Bil
They could offer double the current market price for any of the Big 4 and still have Billions left over without having to take on any financing debt to make the purchase.
If they were willing to take on a small amount of debt, then Berkshire could buy all 4 of them.
02-23-2017, 01:11 PM
#30
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Any inputs from the NetJet guys? Rumor had it things went south there in '08 after Buffet hired Dave Sokol to run it(?). In fairness, was it more a result of the 08-09 market crash? Business jet travel would have been the first among discretionary spending accounts to be slashed? I recall NJ pilots got a nice contract (teamsters? '07?). Did Buffet own it then too? Honest questions.
Thoughts?
Thoughts?
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