Berkshire Hathaway's Portfolio Changes Under Greg Abel
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: NASDAQ.COM
- Portfolio Adjustment: Under Greg Abel's leadership, Berkshire Hathaway has made significant changes to its portfolio, cashing out of long-term holdings like Visa while reinvesting in Delta Airlines, indicating a renewed confidence in the airline sector.
- Delta Airlines Investment: Berkshire now owns 6.1% of Delta Airlines, valued at nearly $3 billion, marking a notable shift in the company's perspective on the airline industry, especially following the pandemic's impact in 2020.
- Stable Long-term Holdings: Despite the recent sell-offs, Berkshire retains long-term investments in companies like Coca-Cola and Apple, reflecting Abel's cautious approach to maintaining core assets aimed at ensuring stable revenue streams for the company.
- Optimistic Industry Outlook: As the U.S. airline industry sustains demand through premiumization amid high inflation and rising fuel costs, Abel and Buffett may believe that Delta has developed a durable competitive advantage, showcasing confidence in future growth prospects.
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Analyst Views on DAL
Wall Street analysts forecast DAL stock price to rise
18 Analyst Rating
18 Buy
0 Hold
0 Sell
Strong Buy
Current: 82.490
Low
77.00
Averages
83.50
High
90.00
Current: 82.490
Low
77.00
Averages
83.50
High
90.00
About DAL
Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company has hubs and markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon, and Tokyo. Its segments include Airline and Refinery. Its airline segment is managed as a single business unit that provides scheduled air transportation for passengers and cargo throughout the United States and around the world and includes its loyalty program, as well as other ancillary businesses. Its refinery segment operates for the benefit of the airline segment by providing jet fuel to the airline segment from its own production and through jet fuel obtained through agreements with third parties. The refinery's production consists of jet fuel as well as non-jet fuel products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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