Veteran financier Warren Buffett is a fan of Apple and a big buyer of bank stocks, but might an entire airline be next on his shopping list?
A group of analysts at Wall Street bank Morgan Stanley thinks that could be the case.
In a research note published this week and cited by Business Insider, they write that “based on historical precedent and the state of the [airline] industry” a full-scale acquisition of an airline by Mr Buffett’s Berkshire Hathaway investment firm is a possibility, “particularly if the stocks weaken”.
Mr Buffett doesn’t have a track record of snapping up whole airlines but he did displayed a penchant for bulk buying in the rail industry when he snapped up Texas-based freight railroad company Burlington Northern Santa Fe, in 2009.
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In terms of which airline Mr Buffett might have his eye on, the analysts say that Southwest could be a “plausible” candidate, according to Business Insider, because it is largely focused on the domestic market, shows growth potential and has a well-established management team.
Berkshire Hathaway has been a particularly aggressive buyer of stocks in recent months.