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[emoji15][emoji15] Southwest Bought by Buffet
08-09-2018, 03:42 PM
#1
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Southwest Bought by Buffet
08-09-2018, 04:18 PM
#2
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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, ‘Stay away from the airline industry’. 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.
08-09-2018, 06:22 PM
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Originally Posted by labbats
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, ‘Stay away from the airline industry’. 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 hasn’t lost money since when?
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08-09-2018, 10:27 PM
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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.
It’s fun to read about stuff like this, but it just isn’t going to happen.
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.
It’s fun to read about stuff like this, but it just isn’t going to happen.
08-10-2018, 03:45 PM
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Originally Posted by at6d
I don’t like it. We don’t want to be NetJets/Signature Aviation.
We have lots of cash in the bank. I think that would disappear.
We have lots of cash in the bank. I think that would disappear.
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.
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