Warren Buffett Slashes Wal-Mart (WMT), Kinder Morgan (KMI) Positions, Bullish on Airlines

Delta Air Lines Inc. (NYSE:DAL) stock forms 0.19% of Berkshire Hathaway’s portfolio at the end of September quarter. The fund held 6.33 million shares of the company with the market value of $249 million.  The number of funds from our hedge fund database long Delta Air Lines was at 94 in the quarter ending June. The total value of their holdings stood at $4.65 billion, in comparison to $6.93 billion held by 97 funds at the end of previous quarter. The aviation company announced pay raise for its eligible employees. The 7% increase in the pay will be effective from April, 2017. For knowing more about Warren Buffett’s investment philosophy, read our article here.

United Continental Holdings Inc. (NYSE:UAL) stock gained 20% this year so far. Berkshire Hathaway initiated its position in the company during the September quarter by buying 4.53 million shares. The market value of the holding stands at $237 million and forms 0.18% of Berkshire Hathaway’s portfolio. 57 hedge funds from our database have positions in United Continental Holdings, with total holdings of about $2.52 billion as on the end of June quarter, amounting to about 18.30% of the company’s outstanding stock. The company announced deferring its $5 billion order to Boeing. United Continental Holdings stated that the decision has been taken to cut its costs. The company also said that it will convert orders for 61 Boeing 737-700 planes due to be delivered in the next two years into the newer 737 MAX model.

American Airlines Group Inc (NASDAQ:AAL) stock climbed 10% this year as it also saw Berkshire Hathaway starting its position in the stock. The investment firm held 21.77 million shares of American Airlines Group worth $797 million as on the end of September quarter. 56 hedge funds we track held about $1.35 billion of American Airlines Group stock as on the end of June quarter, in comparison to 61 funds holding stock worth $3.37 billion the previous quarter. American Airlines Group recently updated its guidance for the fourth quarter. The company expects its total revenue per available seat miles in the fourth quarter of 2016 to decline between 0.5 and 2.5 percent on year over year basis. Its pre-tax margins are expected to be in the range of five to seven percent for the quarter.

DISCLOSURE – NONE