Buffett bets on Chinese tourists with Precision Castparts deal

With the purchase of Precision Castparts Corp, Berkshire Hathaway Inc's Warren Buffett is wagering that increasing world travel, especially in China and emerging markets, will buoy the aerospace industry for years to come.

Airlines have been ordering new planes to meet growing demand for travel and replacing less efficient and less comfortable jets.

This has pushed production backlogs to a record eight years, said Richard Aboulafia, an aerospace analyst with Teal Group, a Fairfax, Virginia-based consultant.