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Why Warren Buffett does not Like Airline Stocks?

Warren Buffett never gets into anything which he never understands and this is the reason that he has kept himself away from this sector.

On digging down further we find that his non getting into airline business is based on this vision which he has shared with Berkshire Hathaway shareholders, in February 2008. As Buffett wrote: through a letter written to them and we quote below:

"Now let's move to the gruesome. 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. Indeed, if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down."

How true it is as Kingfisher Airlines has gone bankrupt and now Spice Jet is on its footsteps. You must check out why worldwide aviation business is losing here.

If you also make money like Warren Buffett; then none can beat our delivery stock tips where you can either sit tight or can capture the breakout and move out.

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