A Surprising Investment: Warren Buffett and Delta's $2.6 Billion Stake

An Overview of Berkshire Hathaway's Investment

Warren Buffett, one of the world's most renowned investors, has stirred the stock market by announcing that Berkshire Hathaway has invested $2.6 billion in Delta Air Lines. For many, investing in an airline at this time might seem like a surprising move, especially considering Buffett's past criticisms of the industry.

A Return to the Airline Sector

The stock market has seen significant fluctuations recently. With a cash reserve of $400 billion, Berkshire Hathaway made a bold move by purchasing 39.8 million shares of Delta in the first quarter of 2026. This indicates that Buffett and his team believe these shares, priced around $66.50 each, will yield profits in the future.

Delta now stands as Berkshire Hathaway's 14th largest investment, and notably, Delta's stock price surged to over $70 immediately after news of the deal broke.

Buffett's Past Investments in the Airline Industry

Berkshire Hathaway previously had around $4 billion invested in airlines such as American, Delta, and United but sold them at a significant loss right after the COVID-19 pandemic began. Buffett once remarked that “the airline industry is one of the worst” due to its unpredictable risks and volatility.

In a letter to shareholders in 2007, he stated that “the worst business is a fast-growing business that requires a lot of capital but doesn’t generate profits.” However, this recent move suggests that Buffett may have changed his perspective or at least that Berkshire Hathaway has found an opportunity with Delta.

Expert Analysis

Many analysts believe now is a good time to invest in airline stocks, especially as the market shows signs of recovery. According to a rule from JPMorgan, when airline stocks drop by 30% or more within 30 days, they are likely to rise at least 50% in the following 180 days. This is a factor that many investors will consider when deciding to invest in the airline sector.

Useful Information for Vietnamese Travelers

For those planning to travel to the U.S. and experience flying with Delta, there are several important details to keep in mind. First, Vietnamese citizens need to apply for a U.S. tourist visa (B1/B2) prior to arrival. Visa processing can take 2-4 weeks. Additionally, you should book flights from Vietnam, typically departing from Ho Chi Minh City (SGN) or Hanoi (HAN). Round-trip ticket prices range from 15 to 35 million VND depending on the timing and date of booking.

The best time to travel to the U.S. is from May to September, when the weather is pleasant and numerous exciting activities take place.

Conclusion

Berkshire Hathaway's renewed investment in the airline industry, particularly in Delta, signals a recovery for this sector following the challenges posed by the pandemic. Although Buffett has repeatedly emphasized the risks of investing in airlines, his decisive action this time suggests he may have altered his approach. For Vietnamese investors or travelers, keeping an eye on the airline industry's developments could present an exciting opportunity in the future.

Article sourced and edited from: One Mile at a Time