Although Warren Buffett has admitted that Berkshire's purchase of Dexter Shoes was a mistake, he has been reticent about the acquisition of NetJets, which clearly hasn't worked as well as he would have liked.
Buffett was so impressed with fractional jet service after signing up as a customer in 1995 before acquiring it three years later for $725 million. Ever since then, NetJet’s has hit quite a bit of turbulence.
Founding CEO Richard Santulli was reportedly forced out in 2009. When Adam Johnson took over the helm of the Columbus, Ohio-based company, he was the fourth CEO since Santulli.
In 2015, Buffett claimed that he hadn’t yet gotten a return on his investment. Subsequently, the following years haven’t been kind to NetJets. Berkshire doesn’t report the business profit separately, including in its amorphous "Services" business, which includes his newspaper holdings among other things.
What it does say isn’t a huge confidence-builder, attributing a 19% increase in 2016 earnings to a “decline in losses from aircraft impairments and dispositions, partly offset by increases in depreciation and restructuring charges and reduced aircraft sale margins.”
Source: InvestorPlace
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