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2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

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1637938 No.1637938 [Reply] [Original]

Why did he buy airplane stock?

>> No.1637986

p-please respond

>> No.1637990

>>1637938

I don't know. Why don't you ask him

>> No.1637991

He obviously believes they are undervalued and will perform better in the future.

>> No.1637992

>>1637990
Because I'm a 21 year old in Canada

>> No.1638010

>>1637938
a lot of the airline stocks pay dividends. He can invest and buy MILLIONS of stocks and the dividends he receives will be in the millions of dollars.

>> No.1638084

Perhaps a future airline price war?

>> No.1638161

>>1637938
Airplane or Airline?
Assuming he's bought into Boeing, I think they just announced they're going to focus more on their repairs business, which sounds like Buffett's kind of company
>not only do they sell the plane now, but they sell the services for years. WB likes loyalty.
>Difficult to disrupt. Who's their competitors? Bombardier? Airbus? I can't even think of any others.

>> No.1638276

>>1638161
Also, they're competing with SpaceX for contracts.

http://money.cnn.com/2016/10/05/technology/boeing-mars-spacex-elon-musk/

If this space stuff isn't too soon and escalates into something like space tourism or something even grander, wouldn't that make it yet another reason to invest using the buy and hold method?

Better than just investing into SpaceX, IMHO.

>> No.1638286

>>1638276
>If this space stuff isn't too soon and escalates into something like space tourism or something even grander, wouldn't that make it yet another reason to invest using the buy and hold method?
Why yes. Yes it would.

>> No.1638293

>>1637938
Now I'm a bit new to the game but I think with trump saying he will open up oil reserves in the states and some claim opec will try to keep oil prices down in protest. Ether way we look to have cheaper oil, it will only benefit delivery and transport companys.

Second with castros recent death the prospect of opening new air routes to Cuba can't hurt business.

Please tell me if this doesn't make sense as I am currently diversifying my portfolio to this mindset because about 1/3 of it is oil at the moment.

>> No.1638298

>>1638293
Not gonna Larp and comment on specifics: but you sound correct.

But since OP is about Buffett, I doubt those would have been direct factors in his investing in the airline industry, he likes stability, or at the very least a company which is still profitable even when the underlying commodities are high.

>> No.1638342

same reason he has bought any stock for the past few decades

>> No.1638555

>>1638342
What's that?

>> No.1638606

>>1637938

Trump went on a tangent about how shitty are airports are while running for president. I don't know if the government can do much about airports.They're not like roads and highways are they?

>> No.1638711

Buffet has said that airline market is too competitive, requires too much staff and has low margins. What if the industry is going to be evolved by robots? Or alternative fuels? If the companies that he bought are going to utilize the new technology first they might take out some competition.

>> No.1638716

>>1638711
Buffet only holds stock for a year though.

>> No.1638744

>>1638161

He bought into AA.

>> No.1638765

Just got a blizzard because of this thread

>> No.1638822
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1638822

>>1638765
Jokes on you this thread is viral marketing.