Study of FDX
- 01/14/2020 – good news for FedEx from Amazon
Amazon lifts FedEx ground delivery ban for sellers, FedEx shares rise
- Amazon informed third-party sellers that they can resume using FedEx’s ground delivery shipping services.
- Last month, Amazon temporarily suspended FedEx’s ground delivery for Prime shipments, citing poor delivery performance.
- The decision caught some third-party sellers off guard during the busiest shopping period of the year.
- 01/13/2020 – It makes sense for Buffett or Amazon to buy FedEx
Warren Buffett Should Buy FedEx. It’s Cheap and Elephant-Sized.
Buffett prefers simple-to-understand businesses with good management and so-called competitive moats—business characteristics that ensure rivals can’t eat away at financial returns. Those criteria have led him to amass businesses in a range of industries including manufacturing, retail, consumer staples, home building, insurance, and utilities, among others.
Berkshire also owns transportation and logistics assets including the Burlington Northern Santa Fe railroad, as well as the truck-leasing outfit Xtra. Adding FedEx to the mix would give those businesses economies of scale, and Buffett’s cash would let FedEx battle through headwinds it currently faces without the need to worry about short-term earnings.
Buffett’s conglomerate is one of the few companies that could simply write a check for FedEx. It means a deal could happen without burdening the combined company with interest expenses.
