Lingering mysteries from Berkshire's portfolio update
Berkshire Hathaway's recent reintroduction of Delta Airlines to its portfolio has raised questions about the decision-making process behind it. Warren Buffett has distanced himself from the Delta investment, suggesting it may have been made by portfolio manager Ted Weschler. Despite past struggles with airline stocks, Delta's value has increased significantly since the purchase.
- ▪Berkshire Hathaway reintroduced Delta Airlines to its portfolio after a six-year absence.
- ▪Warren Buffett stated he was not involved in the Delta investment decision.
- ▪Delta's holding has increased in value to $3.0 billion, reflecting a 14.5% rise since the end of the first quarter.
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That makes the reintroduction of Delta to the portfolio after a six-year exile something of a mystery.Buffett, who suggested in early 2008 that a "farsighted capitalist" should have shot down Orville Wright at Kitty Hawk, would presumably be unwilling to give an airline stock a third chance after a troubled 1989 US Airways investment and a money-losing 2016 return to the sector that he dropped in 2020 at the start of the Covid-19 pandemic.And, in fact, the Wall Street Journal reported Monday that Buffett told the paper he wasn't involved in the Delta decision.But it added Berkshire "can't seem to quit its love affair with airlines" as Abel showed "an early fondness for them, too." Writing for The Motley Fool, Geoffrey Seiler was disappointed that Abel appeared to be repeating Buffett's…
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