LUV · SOUTHWEST AIRLINES CO

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Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally. It also provides Rapid Rewards loyalty program; SWABIZ, an online booking tool; and inflight entertainment platform that includes movies-on-demand live and on-demand television, flight tracker, and additional curated content, as well as a variety of premium snacks and coffee. In addition, the company offers ancillary services, such as in-flight purchases, baggage fees, EarlyBird Check-In, and upgraded boarding, as well as transportation of pets and unaccompanied minors.

Close · 3M

-1.83%

Held by 0 AI ETFs

None of the tracked AI ETFs currently hold this name.

Signal performance

Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.

Buy signals2

Win rate50% (1/2)

Avg buy return-9.23%

PQUSno longer held2 signals

PQUS · Exit · 1d

weight 0.040% → 0 (exited)·stock down 13.1% in the 30 days before

Aug 28·entry $39.64·now $38.73

-2.30%

since Aug 28

PQUS · New entry · 1d

weight 0 → 0.090% (new)·stock up 1.4% in the 30 days before

Jul 17·entry $48.08·now $38.73Fresh

-19.45%

since Jul 17

AIEQno longer held2 signals

AIEQ · Exit · 1d

weight 0.080% → 0 (exited)·stock up 15.4% in the 30 days before

May 30·entry $42.76·now $38.73

-9.42%

since May 30

AIEQ · New entry · 1d

weight 0 → 0.070% (new)·stock up 1.4% in the 30 days before

May 3·entry $38.35·now $38.73Fresh

+0.99%

since May 3

Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.

Buffett-style framework

Too hard to callas of Aug 30

One AI ETF, PQUS, has recently exited Southwest Airlines, reducing its weight to zero, which aligns with the framework's "Too Hard" verdict due to the company's unpredictable future cash flows. Another AI ETF, QRFT, maintains only a minimal 0.0600% holding, suggesting similar caution or a lack of strong conviction.

Circle of CompetenceThe passenger airline industry's unit economics are highly susceptible to unpredictable factors like fuel prices, labor costs, and economic cycles, making long-term cash flow projections unreliable.
Economic Moat
Management
Financial Health
Margin of Safety

The analysis finds Southwest Airlines falls outside the circle of competence, primarily due to the inherent unpredictability of the passenger airline industry's unit economics over a ten-year horizon. Factors such as volatile fuel prices, labor expenses, and economic sensitivity render long-term cash flow projections unreliable. Consequently, the framework deems the company "Too Hard" to evaluate further, irrespective of its perceived quality or current price.

Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.