Bil­lion­aire Buf­fett in­vests in three ma­jor US air­lines

The Myanmar Times - - International Business -

BIL­LION­AIRE in­vestor War­ren Buf­fett has taken stakes in three large US air­lines, in a US$1.3 bil­lion bet that marks a sharp U-turn of his an­tag­o­nis­tic views on the sec­tor. Mr Buf­fett’s Berk­shire Hath­away Inc in­vested $797 mil­lion in Amer­i­can Air­lines, $249 mil­lion in Delta Air Lines and $237 mil­lion in United Con­ti­nen­tal Hold­ings, ac­cord­ing to a reg­u­la­tory fil­ing re­viewed by AFP on Novem­ber 14. Berk­shire Hath­away also took a stake in South­west Air­lines, CNBC tele­vi­sion net­work re­ported.

The fi­nan­cial guru was known for his dis­like of the air­line in­dus­try af­ter his dis­as­trous bet on pre­ferred shares of US Air­ways in 1989, call­ing the sec­tor a “death trap”.

The sur­prise Berk­shire news pushed air­line shares sharply higher in af­ter-mar­ket trades. Amer­i­can Air­lines jumped 3.5 per­cent, Delta was up 2.9pc and United Con­ti­nen­tal, par­ent of United Air­lines, gained 2.6pc.

Mr Buf­fett, the head of the mas­sive Berk­shire Hath­away con­glom­er­ate, is the world’s third-wealth­i­est per­son.

Photo: AFP

War­ren Buf­fett is known for his dis­like of the air­line in­dus­try.

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