Berkshire Loads Up on Delta Amid Fuel Frenzy

Berkshire Hathaway has been quietly buying up shares of Delta Air Lines as oil prices skyrocket.

The conglomerate, led by Greg Abel, purchased a $2.6 billion stake in Delta as of March and added another 44% to its position in the second quarter, bringing it to about 57 million shares valued at roughly $5.4 billion by June.

This move is significant, given that Berkshire Hathaway's previous investments in airlines have not been successful, with Warren Buffett once calling the industry a 'death trap' for capital and joking that investors would have been better off if the Wright Brothers' plane had crashed at Kitty Hawk.

However, this time around, the company appears to be betting on Delta's strength as an airline, particularly given its unique advantage of owning its own refinery outside Philadelphia, which could lower its fuel costs by $0.40 per gallon in the fourth quarter.