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I think it was in the notes to a recent re-print of The Intelligent Investor or Security Analysis but it made clear that the cumulative profit of the airline in
by jrw89 16y ago
I think it was in the notes to a recent re-print of The Intelligent Investor or Security Analysis but it made clear that the cumulative profit of the airline industry has been negative overall (I'll try and find the reference to back it up). Of course there are some airlines that make money, but a lot that don't. Think of British Airways: essentially a loss-making pension fund with an airline on the side.
- Luc 16y agoBottom of p.7, 4th edition with preface by Warren Buffett. But note the full quote:'It is commonly accepted today that the cumulative earnings of the airline industry over its entire history have been negative. The lesson Graham is driving at is not that you should avoid buying airline stocks, but that you should never succumb to the "certainty" that any industry will outperform all others in the future.'