Organizers claimed that nearly 2 million Hong Kong protesters took to the streets Sunday in a rally to demand the city's top official resign a day after she suspended — but...China Politicsread more
Heavy rains caused unprecedented delays in planting this year and contributed to record floods across the central United States.Agricultureread more
Stocks in Asia traded mixed on Monday as investors await a U.S. Federal Reserve meeting set to happen later in the week stateside.Asia Marketsread more
Although Cook did not mention companies by name, his commencement speech in Silicon Valley's backyard mentioned data breaches, privacy violations, and even made reference to...Technologyread more
In the survey, 66% of Democratic primary voters say they'd be enthusiastic or comfortable about Biden as their nominee to take on President Trump in the 2020 election. Just...Politicsread more
U.S. ambassador to Israel David Friedman called the gesture a "birthday present" to Trump, who turned 73 on Friday.Politicsread more
The outlook for Germany's economy and political stability are more uncertain than ever, writes Michael Ivanovitch.World Economyread more
Hong Kong democracy activist Joshua Wong walked free from prison on Monday after serving nearly five weeks for contempt of court, pledging to join a mass protest movement...China Politicsread more
The agreement, which is on the framework for the plan of adjustment, provide for more than a 60% average haircut for all $35 billion, a 36% haircut on pre-2012 general...Bondsread more
Target's registers were down on Saturday for several hours preventing customers from checking out.Retailread more
The newspaper wrote that Goldman's executive are hoping CEO David Solomon's changes to a firm that historically thrived in investment banking and trading will boost its...US Marketsread more
Following is breaking news from CNBC's Becky Quick today, Monday, November 14th. Following is a link to the article on CNBC.com: http://www.cnbc.com/2016/11/14/buffetts-berkshire-takes-stakes-in-four-major-airlines.html.
All references must be sourced to CNBC.
Berkshire Hathaway's just released SEC filings show that the company has taken a stake in three of the four major airline companies — American Airlines, United Continental Holdings and Delta Air Lines.
But CNBC can report exclusively that Berkshire also has taken a stake in the fourth major carrier, Southwest Airlines.
The move into airlines is a shocking reversal for Warren Buffett, who has shunned the industry for decades following a volatile investment he made in US Airways back in 1989. He bought $358 million in preferred shares of US Airways, which almost immediately dropped in value.
By 1995, Berkshire had written down the investment to $89.5 million, just 25 cents on the dollar from the original amount. Buffett actually made money on the deal in the end, to the tune of about $250 million. But the agita he suffered from the investment was enough to sour him on the entire airline industry, something he has frequently written about in his annual letters to shareholders.
He called the US Airways investment a mistake in almost every annual letter from 1989 to 1996. As early as 1989, he complained about the "kamikaze pricing tactics of certain carriers," and said of the industry, "It's impossible to be a lot smarter than your dumbest competitor." And in 2007, he laid out his argument against investing in airlines yet again.
"The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, then earns little or no money. Think airlines. Here, a durable competitive advantage has proven elusive 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."
So what changed Buffett's mind? He won't say, citing a self-imposed rule to not discuss Berkshire investments.
The reason he is breaking his silence about Berkshire's position in Southwest Airlines, though, is his friendship with Herb Kelleher, Southwest's co-founder. The SEC filing out Monday only includes purchases made through Sept. 30, and Berkshire's purchase of Southwest Airlines shares took place after that date.
But Buffett didn't want investors to see Berkshire's purchases of the three other major carriers and assume he was intentionally avoiding Southwest Airlines. Last month in San Antonio, Buffett says he ran into Kelleher, where they joked about airline stocks.
"I'd feel terrible if the story the next day was why wasn't Southwest included, and he didn't know we bought it for three months," Buffett told CNBC.
With CNBC in the U.S., CNBCin Asia Pacific, CNBC in Europe, Middle East and Africa, and CNBC World, CNBCis the recognized world leader in business news and provides real-timefinancial market coverage and business information to approximately 381 millionhomes worldwide, including more than 94 million households in the United Statesand Canada. CNBC also provides daily business updates to 400 million householdsacross China. The network's 15 live hours a day of business programming inNorth America (weekdays from 4:00 a.m. - 7:00 p.m. ET) is produced at CNBC'sglobal headquarters in Englewood Cliffs, N.J., and includes reports from CNBCNews bureaus worldwide. CNBC at night features a mix of new realityprogramming, CNBC's highly successful series produced exclusively for CNBC anda number of distinctive in-house documentaries.
CNBC also has a vastportfolio of digital products which deliver real-time financial market news andinformation across a variety of platforms including: CNBC.com; CNBC PRO, thepremium, integrated desktop/mobile service that provides live access to CNBC programming,exclusive video content and global market data and analysis; a suite of CNBCmobile products including the CNBC Apps for iOS, Android and Windows devices;and additional products such as the CNBC App for the Apple Watch and Apple TV.
Members of the media canreceive more information about CNBC and its programming on the NBCUniversalMedia Village Web site at http://www.nbcumv.com/programming/cnbc.
For more information aboutNBCUniversal, please visit http://www.NBCUniversal.com.