Berkshire Hathaway Buys Airline Stocks

In his 2008 letter to shareholders of Berkshire Hathaway, Warren Buffett described the airline industry as follows:

“The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money. Think airlines. Here a durable competitive advantage has proven elusive ever since the days of the Wright Brothers. Indeed, if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down.”

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