Berkshire’s Q1 13F filing reveals a rare airline investment, defying Warren Buffett’s long-standing skepticism of the sector.
Berkshire Hathaway disclosed a new 40 million-share position in Delta Air Lines during Q1, marking a departure from Warren Buffett’s historical aversion to airline stocks. The stake represents nearly 1% of Berkshire’s portfolio, signaling a significant bet on the carrier despite Buffett’s 2007 critique of airlines as capital-intensive, low-margin businesses.
Delta’s stock has surged 66% over the past five years, raising questions about valuation timing. The move coincides with rising oil prices and economic uncertainty, which could pressure travel demand. Berkshire’s shift under new CEO Greg Abel suggests a potential long-term play on Delta’s market leadership.
The filing did not detail immediate market reactions, but the position’s size and sector choice may draw investor attention to airline resilience amid macroeconomic headwinds.