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.
Brendan Byrnes and Austin Smith
Apr 6, 2013 at 1:00PM
Originally joining The Motley Fool in 2011 as editor of the Industrials sector, Brendan is now based in New York City where he interviews executives, authors, and influential people from across the investing and business world. He also provides analysis for Fool.com.
Motley Fool Returns
Stock Advisor S&P 500
Join Stock Advisor
Discounted offers are only available to new members. Stock Advisor list price is $199 per year.
Stock Advisor launched in February of 2002. Returns as of 06/19/2021.
Cumulative Growth of a $10,000 Investment in Stock Advisor Calculated by Time-Weighted Return
- Why CAI International Stock Is Soaring Higher Today
- Commercial Metals Company (CMC) Q3 2021 Earnings Call Transcript
- Lennar (LEN) Q2 2021 Earnings Call Transcript
- Ford Boosted Its Second-Quarter Guidance, but What Does It Really Mean?
- Why United States Steel, Century Aluminum, and Star Bulk Carriers Stocks All Crashed Today