Berkshire Hathaway returns to airlines with $2.6 billion Delta stake
Berkshire Hathaway has returned to the airline sector it abandoned at the start of the pandemic, disclosing a $2.65 billion stake in Delta Air Lines. The first-quarter 13F filing also showed full or partial exits from major technology and healthcare names including Amazon and UnitedHealth. The moves suggest that Warren Buffett's successor Greg Abel is putting an increasingly visible stamp on the portfolio.
Berkshire Hathaway's 13F filing on Friday evening showed the conglomerate returning to the airline sector it exited entirely at the start of the pandemic. The company opened a roughly $2.65 billion position in Delta Air Lines in the first quarter and also picked up a new stake in Macy's. According to CNBC, Berkshire also fully exited Amazon and pared back UnitedHealth and several insurance names during the same period.
The decisions point to the increasing influence of Greg Abel, who took over from 95-year-old Warren Buffett. Buffett famously sold every airline holding in 2020 with the comment that 'the industry has changed,' so the Delta move marks a notable reversal that markets will debate. US airline shares traded at reasonable valuations through the first quarter.
The disclosure also enters the closely watched calendar of who-owns-what that retail investors track. Shares ticked modestly higher in after-hours trading, but analysts said the broader signal is that Abel's portfolio management style is becoming more active. Coming quarters will show whether Berkshire intends to expand its airline footprint further.
More from North America
Dow drops more than 500 points as tech slumps and Treasury yields spike
The Dow Jones Industrial Average closed Friday's session more than 500 points lower as a sharp sell-off in technology stocks and a surge in the 10-year Treasury yield dragged the major indexes down. After fresh inflation data, futures markets began pricing in a Federal Reserve rate hike rather than the cuts traders had previously expected.
SpaceX accelerates IPO timeline, targets June 12 Nasdaq listing
Investing.com reports SpaceX has accelerated its IPO timeline, with pricing as early as June 11 and a Nasdaq debut targeted for June 12. The deal is shaping up as one of the largest tech listings in years. Sources say the company is moving fast to lock in the spring window before market conditions shift.
GameStop makes $55.5bn takeover offer for eBay
GameStop CEO Ryan Cohen announced a $55.5 billion takeover offer for eBay, seeing potential to make it a much bigger rival to Amazon.