Warren Buffett Buys Burlington Northern Railroad - Truckers' Trucking Forum

Mooney · **^ Top** #1 2 Weeks Ago

Quote:

You may not be ready to bet on the U.S. economic recovery, but Warren Buffett sure is.
The billionaire made a splash Tuesday when his investment firm Berkshire Hathaway ( BRK - news - people ) announced a deal to take over railroad operator Burlington Northern Santa Fe ( BNI - news - people ). The cash-and-stock deal is worth $100 a share for the 77.4% of the company Berkshire didn't already own, for a price tag near $34 billion.
Buffett called the deal an "all-in wager on the economic future of the United States," but his enthusiasm couldn't give Wall Street a lift Tuesday morning. The Dow Jones industrial average was down 71 points to 9,718 in the first 10 minutes of trading, while the S&P 500 lost 7 points to 1,035 and the Nasdaq fell 12 points to 2,038. Burlington Northern shares shot up 28.2%.

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Not sure I see the wisdom of buying at the high. Maybe Buffett is getting too old.

Brickman · **^ Top** #2 2 Weeks Ago

Its a tax write off for Buffett if it goes any where other than up.

Baack · **^ Top** #3 2 Weeks Ago

Quote:

Most investors looking for the "next big thing" seek out whiz-bang investments like alternative energy, lifesaving biotech drugs, handheld Internet devices and, for doomsayers, hard assets like gold.
Railroads, which had their heyday in another era, are rarely mentioned as a must-have investment for those looking to get rich.
So why is Warren Buffett, arguably the world's most famous and successful investor, betting more than $26 billion of his spare cash to acquire all of Texas-based railroad Burlington Northern Santa Fe BNI?
On Tuesday, Buffett turned heads on Wall Street when he placed his biggest bet of his career on rails — and the battered USA economy, for that matter.
In promoting the deal, the so-called Oracle of Omaha insisted that the business of moving things like food, sources of energy, autos, agricultural products and other stuff consumed by consumers and businesses will grow during the next 10, 20, 30 years.
In an interview with USA TODAY, Buffett stresses that the rail industry is modern indeed. He trumpets the ability of railroads to move goods from Point A to Point B more efficiently and more environmentally friendly than the fuel-guzzling 18-wheelers that clog the nation's already overcrowded highways.

http://abcnews.go.com/Business/buffe...ory?id=8998919

jtrnr1951 · **^ Top** #4 2 Weeks Ago

Here, Here !!!!!!!!!!!!

Mooney · **^ Top** #5 2 Weeks Ago

Quote:

Originally Posted by Baack

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Warren better hope Chairman Panty-Waist doesn't outlaw coal burning, that's a big chunk of BNSF's business.

Working Class Patriot · **^ Top** #6 2 Weeks Ago

Quote:

Originally Posted by Mooney

Warren better hope Chairman Panty-Waist doesn't outlaw coal burning, that's a big chunk of BNSF's business.

At this rate...Democratic ballots will be used instead of coal.......There's not much else use for them other than burning them up.....

chief · **^ Top** #7 2 Weeks Ago

what is he buying it with? his holding company (berkshire hathaway) lost $109,267,000,000 last year.

Working Class Patriot · **^ Top** #8 2 Weeks Ago

Quote:

Originally Posted by chief

what is he buying it with? his holding company (berkshire hathaway) lost $109,267,000,000 last year.

Drop in the bucket for Warren.....

lowbudget · **^ Top** #9 2 Weeks Ago

Quote:

the ability of railroads to move goods from Point A to Point B more efficiently and more environmentally friendly than the fuel-guzzling 18-wheelers that clog the nation's already overcrowded highways.

1: our "fuel-guzzling 18-wheelers" would be more efficient too (fuel wise) if we didn't have egr

2: railroads are completely INEFFICIENT time wise (you can wait up to 6 months to get a railcar to ship your goods)

3: what is the PURPOSE of a highway? To facilitate COMMERCE (trucks)

4: the interstate highway's PRIMARY purpose is for quick mobilization of DEFENSE equipment, secondary is grandma's drive to church.

and I;m pretty sure those oil-soaked railroad ties are oh so environmentally friendly, along with the millions of gallons of fuel spilled by the railroads.

Baack · **^ Top** #10 2 Weeks Ago

Quote:

OMAHA, Neb. – Warren Buffett's company says its third-quarter profit tripled as the improving economy and stock market boosted the value of Berkshire Hathaway Inc.'s derivative contracts.
Berkshire said Friday it generated $3.2 billion, or $2,087 per share, in net income. That's up significantly from last year's $1.1 billion, or $682 per share.
Most of the swing in earnings is related to unrealized gains in the value of Berkshire's derivatives, some of which are tied to credit defaults and some of which are tied to equity markets.
Berkshire's insurance companies performed well, but its other operating companies struggled.
Berkshire owns more than 60 subsidiaries and it has major investments in such companies as Coca-Cola Co. and Wells Fargo & Co.

http://news.yahoo.com/s/ap/20091106/...shire_hathaway

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