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.”
On Monday, news arrived that Berkshire Hathaway had made some investments in the airline industry. Specifically, the most recent quarterly filing indicated that Berkshire Hathaway purchased $800 million in American … Read the rest of this article!