Google has suspended business activity involving the transfer of hardware, software and key technical services with Huawei. Analysts say that could be a big blow to the...Technologyread more
Huawei Technologies will immediately lose access to updates to the Android operating system, a source close the matter told Reuters.Technologyread more
Huawei claims it has developed its own operating system for smartphones and laptops for "extenuating circumstances."Technologyread more
Current geopolitical tensions are making it harder and harder for oil-producing nations to make decisions that will help stabilize crude prices, Russian Energy Minister...Oilread more
Oil prices jumped on Monday after Saudi Energy Minister Khalid al-Falih indicated there was a consensus among OPEC and allied oil producers to continue limiting supply.Energyread more
Bank, property and healthcare stocks jumped, pushing Australian markets to a 11-year high, as Scott Morrison and the Liberal-led conservation government are poised for a...World Marketsread more
Trump's threat, posted on Twitter, comes amid rising international tensions in the Middle East as the U.S. has dispatched a carrier strike group and bomber task force to the...Politicsread more
Prime Minister Narendra Modi and his Bharatiya Janata Party are set to form the new government again, exit polls from India's month-long parliamentary elections show. But past...Electionsread more
The latest crisis in the uneasy French-German relationship was accelerated by Trump's decision to stop Germany's comfortable and decades-old free-riding on trade and security...Europe Politicsread more
While some fans of the long-running "Game of Thrones" felt satisfied by the show's final bow, others were quick to express their displeasure with how events unfolded.Entertainmentread more
Stocks in Asia were mixed on Monday amid a series of geopolitical developments across the region.Asia Marketsread more
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.
— Follow CNBC International on and Facebook.