Warren Buffet's Berkshire Hathaway (NYSE:BRK) revealed its portfolio today in a mandatory Schedule 13F filing with the SEC. The regulatory filing showed the billionaire investor increasing his holdings in banks, including Bancorp, which he was rumored to be considering for acquisition. Investors are carefully watching the investors actions as it could mean an opportunity for them to piggyback on his famous market knowledge.

Buffet added to his stakes in three large U.S. banks, including Wells Fargo, U.S. Bancorp, and Bank of America. He also disclosed a new stake CarMax Inc. (NYSE:KMX), which surprised many investors since the auto industry is not expected to turn for some time now. The timing is also questionable as the company appears to be headed towards a recession and car loans are becoming more scarce.

Wells Fargo made the news in another way today after its CEO said that its exposure to CDO's and asset-backed commercial paper is minimal. He also noted that the U.S. housing market is now the worst since the Great Depression and is far from over. This dropped many bank stocks while Wells Fargo traded higher on news that its own exposure was limited.

The banking market is still being hit hard from subprime and credit market concerns that have caused deep losses in many investment banks like Merrill Lynch and even brokerages like E*Trade. Whether or not we have hit a bottom remains to be seen, but it appears that Warren Buffet may be predicting a bottom coming relatively soon given his large move.

In the end, this is good news for the banking industry and very interesting news for investors who are sitting on the sidelines. Buffet has been involved with the banking world through several crisises like this one (read: LTCM) and has experience in the industry. Combined, these factors make the banking industry worth watching closely!

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Billionaire investor Carl Icahn acquired stakes in Genzyme Corporation(NDAQ:GENZ) and Harrah's Entertainment Inc. (NYSE:HET) after selling his stakes in Kraft Foods Inc. (NYSE:KFT) and Clear Channel Communications Inc. (NYSE:CCU), according to a Schedule 13F filing released Wednesday. Shareholders are hoping that the activist investor will work to unlock value in some of these new investments.

Icahn also reported new stakes in several video game providers (TTWO, PLCE), medical companies (MOGN, CYBX, ACOR, CRA, ABI, LSR), and gas and oil companies (CMT, TLM). Interestingly, he sold off his stake in aluminum producers (AA, AL). Meanwhile, he significantly increased his stake in larger companies like BEAS, MOT, REGN, and APC.

Carl Icahn is well known in the investment community as an activist investor willing to do what it takes to unlock value in his investments. The investor has ousted several CEOs and enforced "strategic alternatives" like share buybacks and outright sales. It is likely that at least his stake in BEAS will result in an activist situation. Combined these factors make Carl Icahn worth watching!

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Delta Airlines (NYSE:DAL) announced that it has formed a special board committee to evaluate strategic options after being pressured by an activist hedge fund. Pardus Capital Management, which holds stakes in Delta and United, sent a letter to Delta Management Tuesday renewing its call for airline consolidation and advocating a Delta-United merger. Shareholders pushed up the stock of both companies in response.

Pardus noted in their letter that they believe it is, "imperative that Delta enter into a merger transaction with another carrier given the rapid rise in fuel prices and increased risk to the business as a stand alone entity." The letter came in response to word that Delta had consulted industry experts, including a former Continental Airlines chief executive. Some believe that this may have caused concern that Delta was looking elsewhere for merger possibilities.

Pardus insisted that a merger between Delta and United could result in $585 million in synergies along with other benefits that would result in a combined company stock worth $53 per share - a 75% improvement over today. The hedge fund even offered to support the Delta management team leading the strategic direction of the combined entity.

"We have been consistent in our public statements that Delta believes that the right consolidation transaction could generate significant value for our shareholders and employees and that strategic options should be evaluated," said Delta in a statement. "With oil at over $90 a barrel, this analysis takes on a heightened importance as we factor those prices into our long-term planning process."

In the end, this is all good news for Delta shareholders and may finally mark an end to the problems that have plagued the company before it was forced to declare bankruptcy and emerge in debt. These factors make DAL a stock worth watching closely!

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