Buffett Predicts These Airline Stocks Will Soar

By Markets FOXBusiness

Warren Buffett, chairman and CEO of Berkshire Hathaway, speaks at the Fortune's Most Powerful Women's Summit in Washington October 13, 2015. REUTERS/Kevin Lamarque/File Photo (Copyright Reuters 2017)

The Oracle of Omaha is looking to the sky for investment inspiration these days, as Berkshire Hathaway (BRK.A) added sizable stakes to its positions in a few select airline stocks.

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In the first quarter Berkshire upped its stake in both American Airlines (AAL) and Southwest Airlines (LUV), by 8 percent and 10 percent respectively, according to the company’s most recent regulatory filing. Buffett now holds 49.3 million shares worth more than $2 billion in American and 47.7 million shares worth $2.57 billion in Southwest.

On the other hand, Berkshire dumped 8 percent of its holdings in Delta Airlines (DAL).

Despite the recent, public difficulties within the airline industry, which Buffett himself once called a “death trap for investors,” Buffett has been a big buyer in the industry throughout recent years. Last year Berkshire became one of the largest investors in American, Delta, United (UAL) and Southwest (LUV).

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