Warren Buffett’s Berkshire Hathaway Inc. (BRK.B) could use its controversial cash hoard to purchase Southwest Airlines Co. (LUV), according to Morgan Stanley.
In a research note, reported on by CNBC and MarketWatch, analysts at the bank noted that Berkshire now has a thing for airline stocks, over a decade after Buffett dismissed them as “the worst sort” of businesses. Within the sector, Morgan Stanley identified Southwest Airlines as the best fit, adding that the Dallas, Texas-based low-cost carrier’s “consistent earnings power,” strong balance sheet, good management, “simple” business model, low cost structure, “significant competitive advantage” and attractive price are exactly the type of characteristics that Berkshire usually looks for.
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Should Berkshire Hathaway Buy LUV?
