Superbelegger Buffett let the eye fall on aviation – Time

The most successful stockpicker in the world, is investing 1.2 billion dollars in American luchtvaartaandelen. This pushed European counterparts higher, but at the same time, eyebrows frown.

Buffett put out in the past decades, his distaste for airlines as investments, not under the chairs or benches. In 2002, he noted that someone, in 1903, Orville Wright had to shoot for the first motorized flight in the history books continued. ‘That person had his progeny save a lot of money,” said Buffett framed.

In 1989, he burnt himself, the fingers of an investment in convertible bonds of US Air. After a write-down of tens of millions was the ceo of Berkshire Hataway for many years, not to speak about the business model of major airlines. The sector is suffering, according to him, structural under high costs, strong unions, and stiff competition. Meanwhile, she is also the at the mercy of fluctuating fuel prices. ‘A century of draining that capital like no other company can. Because people continue to be fresh money in, ” a voice announced in 2002.

The price pressure on both long haul flights, as the lagekostensegment will not disappear quickly in Europe.

Frank The Mole analyst The Investor

In 2016, which sounds completely different. All remained the chief frugal with his comments after the publication of a document that are investment Monday night blootgaf. In the third quarter built Berkshire Hathaway a stake in American Airlines (797 million dollars), United Continental (238 million) and Delta (249 million). Shortly afterwards there was still an interest in the Southwest.

European shares

Just as the American favorites of Berkshire Hathaway have European airlines to capacity at a very conservative pace increased since the financial crisis. The price war was in the U.S. less bloody, which makes the companies to the other side of the Atlantic last year’s record profits could register. This year it came to a sharp reduction in the price of oil on the top.

The choice for luchtvaartaandelen does not come from the barrel of Warren Buffett (86) only. Two former hefboomfondsmanagers, Todd Combes and Ted Weschler, express still more emphatically made their mark on the decisions of Berkshire Hathaway. Gradually got both men have more money under management, and early this year, an investment of $ 1 billion in Apple reality. 'They certainly have more cheese eaten some sectors than I, that in the last 10 to 15 years have changed greatly, ” confessed Buffett on during the general meeting in the U.s. Omaha, the largest city of Nebraska. Todd Combes and Ted Weschler started respectively in 2010 and 2011 to commute to Omaha. Ted Weschler was given a job by two years in a row, millions to provide for a dinner with Warren Buffett. Nowadays, there is he to foot to the offices of Berkshire Hathaway.

'the European airlines benefited from the cheaper fuel, but that difference was completely got gobbled up by the continuing price pressure on the tickets,' argues Frank The Mole of The Investor. 'The competition is clearly for long-haul flights. Because everyone is now a low-cost airline company-this also applies for shorter flights. That factor will not disappear quickly.'

The sector is already a few weeks in the elevator since the last resultatenseizoen. The German Lufthansa gave to the profit for 2015 this year at least to match, despite a drop in sales. Air France-KLM announced confidently that the capacity for the coming winter season even more acceleration.

“Both companies are listed on the first sight cheap, but drag heavy pension costs,” says Frank, The Mole. “If you take care to see the schuldenratio there is already a lot worse off.'

Ryanair has no problems, and has as a pure lowcostmaatschappij the cost is much more under control. The share has performed over the last years superior. 'Ryanair, that are customers useful let to pay for all the perks, mainly the ongoing growth of the number of passengers, ” says The Mole. Ryanair increased last week the langetermijnprognose to 200 million passengers in 2024, compared with 119 million this year.