Warren Buffett famously does not invest in airlines. However, the airline index is up 35% over the past quarter. Is Buffett wrong about airlines? In this video, Brendan Byrnes says no. Among the significant structural barriers that prevent airlines from being good long-term investments are fuel, labor, and other operating costs, along with a lack of competitive advantage and the cyclical nature of the business. There may be short-term runs in airline stocks, but for the long haul, these aren't great companies to be had at fair prices. Check out the video for further details.
Is Buffett Really Wrong About Airlines?
By Brendan Byrnes and Austin Smith
-
Apr 6, 2013 at 1:00PM
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Could airline stocks be a good bet after all?
Stocks Mentioned

JetBlue Airways Corporation
JBLU
$10.23
(0.39%)
$0.04

Southwest Airlines Co.
LUV
$43.38
(1.71%)
$0.73

United Airlines Holdings, Inc.
UAL
$44.76
(2.78%)
$1.21

Delta Air Lines, Inc.
DAL
$39.52
(2.28%)
$0.88
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
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