Warren Buffett, the legendary investor and former CEO of Berkshire Hathaway, made headlines recently when it was revealed that the conglomerate had purchased nearly 40 million shares of Delta Air Lines in the first quarter of the year. This move, worth $2.65 billion, marked a significant shift in Buffett’s stance on airlines, as he had previously been vocal about his skepticism towards investing in the industry.
Buffett, who had led Berkshire for six decades before stepping down at the end of 2025, had often expressed his reservations about airlines as an investment. In fact, in his 2007 shareholder letter, he admitted to his own mistakes in investing in US Airways preferred stock in 1989, which ultimately led to losses for Berkshire. Despite his past experiences, Berkshire’s current CEO, Greg Abel, made the bold decision to acquire a substantial stake in Delta Air Lines.
The timing of Berkshire’s investment in Delta is notable, given that the airline reported a $5 billion profit in fiscal 2025. With Berkshire sitting on a record $397.38 billion cash hoard in the first quarter, it seems that the company saw an opportunity to capitalize on Delta’s success. This strategic move underscores the confidence that Berkshire executives have in the airline’s future prospects.
While Buffett may have had reservations about investing in airlines in the past, it appears that Berkshire is taking a calculated risk with its investment in Delta. The decision to acquire such a significant stake in the airline signals a shift in strategy for the conglomerate and demonstrates its willingness to adapt to changing market conditions.
In conclusion, Berkshire Hathaway’s purchase of nearly 40 million shares of Delta Air Lines in the first quarter is a bold move that reflects the company’s confidence in the airline’s future. Despite Buffett’s previous skepticism towards airlines as an investment, Berkshire’s current leadership is taking a different approach and positioning the conglomerate for potential growth in the aviation industry. Only time will tell if this investment pays off for Berkshire Hathaway and its investors.
