Wednesday, August 15, 2018

LUVing Southwest Airlines

Southwest Airlines has been outperforming their competitors since I’ve recommended them in early June. (http://tipsandtricksforinvestors.blogspot.com/2018/06/southwest-airlines-is-very-attractive.html?m=1) Their stock has gained over 18% since than, compared to their competitors, such as American Airlines (AAL) -15% since early June. This is mostly thanks to President Trump’s new tax cuts; historically Southwest pays the most taxes out of any airline and is the largest airline only operating in the United States. Therefore, they can take advantage of this extra money to buy a new fleet of planes or buyback stock. Overall, I would keep Southwest Airlines as a buy, considering Warren Buffett’s boost in LUV investments and their potential buy back in stock.(https://www.bloomberg.com/news/articles/2018-08-14/buffett-s-berkshire-adds-to-bets-on-goldman-sachs-southwest)

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