Berkshire's new CEO overhauls portfolio, dumping a slate of stocks
Berkshire Hathaway's new CEO is making significant changes to the company's investment portfolio by selling off various stocks, including those in the airline industry. This decision reflects a departure from previous investments made by Warren Buffett, who had a complicated history with airline stocks. The move indicates a strategic shift in focus for the company under new leadership.
- ▪The new CEO is overhauling Berkshire Hathaway's investment portfolio.
- ▪Warren Buffett had previously expressed skepticism about airline stocks.
- ▪The decision to sell airline stocks marks a significant change in strategy for the company.
Opening excerpt (first ~120 words) tap to expand
He had purchased the stakes in 2016 as consolidation increased the carriers' pricing power.In early 2017, he told CNBC's Becky Quick, "It's true that the airlines had a bad 20th century. They're like the Chicago Cubs. And they got that bad century out of the way, I hope."That was itself a return to a sector he had shunned for years after a troubled investment in US Airways he made in 1989.In his 2007 letter to shareholders, Buffett wrote, "The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money. Think airlines. Here a durable competitive advantage has proven elusive ever since the days of the Wright Brothers.
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