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Who the airlines really are Primecap, Berkshire Hathaway, T Rowe Price, Vanguard, Blackstone

Discussion in 'Newsstand' started by ahappyelite, Nov 9, 2018 at 8:24 PM.

  1. ahappyelite

    ahappyelite Silver Member

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    They don’t just control one airline. They cross own all of them. Where is the Justice Department? Here is a recipe for robust competition (NOT):

    AA Primecap 13 pct T Rowe Price 10 pct Berkshire Hathaway 10 pct Vanguard 5 Blackrock 3
    DA Berkshire 9 pct Vanguard 7 pct Blackrock 5 Primecap 4 pct
    UA Primcap 14 pct Berkshire Hathaway 10 pct Vanguard 7 Pct Blackrock 7%
    And the new entrant Landsdowne from London buying up boatloads of UA and 4 pct of Delta
     
    Last edited: Nov 9, 2018 at 8:43 PM
  2. Counsellor
    Original Member

    Counsellor Gold Member

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    When assessing these figures, from a standpoint of control it does matter whether the shares are held by the financial company "for its own account" or only in "street name" with someone else as the true beneficial owner.

    Companies like Black Rock and Vanguard that offer brokerage services to their customers may have purchased shares with company money (or responsibility), and as to those shares they can exercise the trappings of ownership -- such as voting for Directors, approving mergers, and the like -- or they may be holding shares in their name (called "street name") but actually belonging to their brokerage customers (i.e., shares purchased by the brokerage customer but held in the customer's account at the financial company). As to those shares (held in street name), the financial company exercises very limited control; generally they must solicit direction and authority ("proxies") before they can vote those shares, and even then are limited (in most cases) to voting the way the beneficial owner directs.

    The point is that just because Vanguard (for example) is listed as the "owner" of 7% of an airline's stock does not necessarily mean Vanguard actually exercises that proportion of control over that airline.
     
  3. ahappyelite

    ahappyelite Silver Member

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    The corruption surrounding the airline industry is absolutely epic. These institutional investors are clearly working in tandem with the airlines to cause the easily proven destruction of competition that has become so pervasive in 2018. They have corrupted the regulators and Congress. The Obama Administration was weaker than weak: this administration has thrown he floodgates wide open. They own the media which has steadfastly avoided the bloodhound pursuit of this multi layered racketeering would have trigged a decade ago. (70% of the entire stock market is said to be owned by these same investment companies.) Airline execs accept obscene levels of compensation and swear allegiance only to big money.This 2016 NYT article had the Justice Department maybe someday perhaps possibly examining this. Since then, the concentration has soared, with companies like Berkshire Hathaway buying up stock galore. And this Justice Department is comatose and compromised.
    https://www.nytimes.com/2016/04/13/...l-investors-raisesquestions-of-collusion.html
    https://www.gsb.stanford.edu/insights/biggest-antitrust-story-youve-never-heard
     
    Last edited: Nov 10, 2018 at 7:45 PM
  4. Counsellor
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    Counsellor Gold Member

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    When you say, "70% of the entire stock market is said to be owned by these same investment companies" you're again running into the "street name" problem.

    The days when most individual investors held shares of stock or mutual funds in their own name has long gone. Now-a-days the rules on "clearing" (settling) trades require the stock or shares to be available either immediately, or within one or two business days depending on the type of transaction, so the seller has to be able to deliver any shares he is selling virtually immediately. Further, the individual has to access the market to make the trade and usually that can be done primarily through brokerage firms or (in case of mutual funds) the fund company managing the particular fund. To further complicate matters, if you want the stock certificate to be issued in your own name and delivered to you, the brokerage firms usually charge an additional fee for that service.

    What these rules have done is to drive the individual investor to not take physical possession of the stock or fund certificate, but rather to keep his stock and mutual fund shares in an account with the brokerage, where they are listed as being "owned" by the brokerage firm despite the individual being the "true" or beneficial owner of the stock or shares.
     

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