The REAL reason why Warren Buffett bought Airline Stocks
This article was originally posted here
On February 14th we discovered that Warren Buffett bought a stake of the four major airlines worth $5.5B.
His position in airline stock is now worth almost $10B
I wondered myself:
what does he see that I don’t?
what does he see, that the market hasn’t seen in the last months/years?
Warren Buffett said “[Airline industry] is been a death trap for investors” in 2013.
What did make him change his mind?
Now it is clear.
It is not MAGA
It is not the oil prices
It is not big data
It is the fact that Airlines have the highest tax rate in the S&P500
And guess what the Donald is going to do to corporate taxes?
And guess who is going to benefit the most here?
Airline stocks may have a brighter future than expected.