Buffet like airlines, especially AAL

[MetalMover]

https://www.fool.com/investing/2017/02/18/warren-buffett-doubled-down-on-airline-stocks-last.aspx

 

[NewHampshire Black Bears]

https://www.fool.com/investing/2017/02/18/warren-buffett-doubled-down-on-airline-stocks-last.aspx

No surprise there ' M M ' . The "Oracle" 'snatched up' BNSF just Before the North Dakota oil patch started to boom. Unlike a CS-er like Ichan being a 'kiss of death' for a company, the "ORACLE" kisses are better than any J D Power awards. Lets hope like Hel*, that it is AA !!

 

[CremaDiLimone]

i think he is firm believer in the shale oil revolution...reason for original buy.

with airlines being one of the heaviest taxed industries...trump is the president and there is a higher ceiling for airlines to grow income without any organic revenue growth. tax cuts, tax cuts and more tax cuts. reason for the recent buy.

here is an example that southwest uses:

Southwest Airlines spokesman Brad Hawkins used figures provided by Airlines for America to give a breakdown of the four major federal taxes and fees on a ticket with a base price of $300. His example includes one connecting flight each way -- in other words, a ticket that includes two flights on the departure segment of the trip and two flights on the return.


Type of tax Amount Total
Excise tax 7.5% x $300 $22.50
Segment fee $3.90 x 4 segments $15.60
Passenger facility charge $4.50 x 4 segments $18
TSA ("Sept. 11th") fee $2.50 x 4 segments $10
Grand total $66.10

buffet is just following up on what parker has said..."in a bad year now, we'll just make less profit".

 

[WeAAsles]

If you guys watched the Leadership video you'd see that Parker was gushing like a giddy little School girl over Buffet purchasing AA stock.

IF it does happen Buffet may actually go for AA because it seems to me like he enjoys owning more American institutional companies and AA certainly is an institution.