Wednesday, November 25, 2009, 6:38PM ET - U.S. Markets Closed.

Buffett Bets $44 Billion on U.S. Railroad!

Posted Nov 03, 2009 11:00am EST by Joe Weisenthal in Investing, Newsmakers, Products and Trends, Recession

From The Business Insider, Nov. 3, 2009:

Warren Buffett's Berkshire Hathaway (BRK) is making a big rail buy, acquiring Burlington Northern (BNI) for $100 per share or about $44 billion. The deal is the largest in Berkshire's history.

Shares of Burlington Northern had been trading around $76, so shareholders are getting a fat 30% premium.

Berkshire already owned over 20% of the company.

From the release:

“Our country’s future prosperity depends on its having an efficient and well-maintained rail system,” said Warren E. Buffett, Berkshire Hathaway chairman and chief executive officer. “Conversely, America must grow and prosper for railroads to do well. Berkshire’s $34 billion investment in BNSF is a huge bet on that company, CEO Matt Rose and his team, and the railroad industry.

“Most important of all, however, it’s an all-in wager on the economic future of the United States,” said Mr. Buffett. “I love these bets.”

Click here to view the full news release.

More coverage from The Business Insider:

Wallie Weitz: Berkshire Hathaway still the perfect holding

 

 

64 Comments

Yahoo! Finance User
Yahoo! Finance User - Tuesday November 03, 2009 11:12AM EST

One word for this: SENILITY.

SANTA SEZ....
SANTA SEZ.... - Tuesday November 03, 2009 11:14AM EST

WARREN BUFFETT WOULD BE THE FIRST TO TELL YOU TO HAVE A VERY MERRY CHRISTMAS AND STOP THE INSANITY. BE KIND TO ONE ANOTHER ........BLESS YOU!

Yahoo! Finance User
Yahoo! Finance User - Tuesday November 03, 2009 11:15AM EST

I Believe That He Is Taking A ...."Big Ganble"...Under These Economic....Times...I Wish Him Well...BUT....HE MAY...."Blow -Up" Like A ..."Atomic Bomb"...Only time Will Define....Every Thing He....BUYS....He Buys On Credit....Credit...The Interest..."Alone"..On $$$ 44-Billions...Will Take Away....Any Profits...Nor Gains....Amen.

ryan j
ryan j - Tuesday November 03, 2009 11:17AM EST

He is just a greedy pig. Look at Geico they base your car insurance on your credit score which has nothing to do with driving. He also had a stake in Moodys which I am sure he use to his advantage to down grade a company, then buy it. A man with his power and wealth did not get there by being a nice guy.

san
san - Tuesday November 03, 2009 11:18AM EST

I guess he doesn't trust the dollar either. Bung it all into assets my good man! :D

ryan j
ryan j - Tuesday November 03, 2009 11:18AM EST

He is just a greedy pig. Look at Geico they base your car insurance on your credit score which has nothing to do with driving. He also had a stake in Moodys which I am sure he use to his advantage to down grade a company, then buy it. A man with his power and wealth did not get there by being a nice guy.

Helga
Helga - Tuesday November 03, 2009 11:19AM EST

Mr. Buffett; welcome to the 19th century! Railroads! Railroads! Railroads! The nest biggest thing since the Ohio Valley Canal Co.... Actually railroads own massive amounts of granted real estate; useless real estate...but it was free!. Oh! yahoo user....I think you are really hot too! That square gray head makes my hearts go pitter patter.

Yahoo! Finance User
Yahoo! Finance User - Tuesday November 03, 2009 11:22AM EST

BUFFETT OUT OF DOLLAR, PUTTING MONEY IN ASSETS & OBAMA FRIEND

san
san - Tuesday November 03, 2009 11:25AM EST

Yahoo! Finance User - "Every Thing He....BUYS....He Buys On Credit...." Buffet doesn't use leverage it's one of his golden rules. He invests the profits from his companies and mostly the cash float of his insurance company!!!

william
william - Tuesday November 03, 2009 11:27AM EST

way to go... finally a real boost for confidence in America... oh yeah... hi my name is Dick (a capital dick.. that is) and I have nothing intelligent to say... I will crawl back in my hole ...

tom c
tom c - Tuesday November 03, 2009 11:28AM EST

He really knows how to bewilder the TT crowd.

ezshooter
ezshooter - Tuesday November 03, 2009 11:31AM EST

Owning the land the tracks sit on: priceless

Rey
Rey - Tuesday November 03, 2009 11:33AM EST

Who Gives a Shxx

Yahoo! Finance User
Yahoo! Finance User - Tuesday November 03, 2009 11:34AM EST

It is an anti-dollar play. Mr. Buffett wants to grab real assets while he can with the dollar he still has. And then, just like Mr. Al Gore, twist the government's arm to pass regulations to favor his company and industry (transport by rail) over, say, truckers, many of whom are independent operators and have little political clout. Kill entrepreneurship so that the 19th century creature of cartel and regulation can prosper. Whatta joke.

Yahoo! Finance User
Yahoo! Finance User - Tuesday November 03, 2009 11:35AM EST

M-A-N-I-P-U-L-A-T-I-O-N Now, did Barry call in the favor himself, or did he make Timmy do it?

san
san - Tuesday November 03, 2009 11:35AM EST

When Buffet buys a car he buys a hail stone damaged one to save money. No auto bailouts for this guy Americans could learn a lot from his prudence and thrift. Ask not what your country can do for you, but what you can do for your country! :D

Hooked on Transportation
Hooked on Transportation - Tuesday November 03, 2009 11:40AM EST

If anyone cares to look at the Company - for several years BNI has been rebuilding its presence and modernizing its facilities in Long Beach, No Calif, Texas and the Pacific Northwest. They have already increased track productivity and decreased the time for ocean containers to leave the West Coast ports and reach Dallas and Chicago. However, as their new facilities come on line in the next two years, they will soon have the capability of shaving even more significant transit time from that traffic. They also carry quite a few bulk raw materials on their line which should benefit from a strong program of government spending on infrastructure and job creation projects. Warren might be gambling, but the smart gamblers know the odds and have done their homework before they go all in!!

san
san - Tuesday November 03, 2009 11:48AM EST

Rey - "Who Gives a Shxx" ..... he's the best (living) investor and 2nd richest man in the world.. many people give a "shxx" what he's investing in. :D

Iuxca
Iuxca - Tuesday November 03, 2009 12:07PM EST

spring is coming. like to order some clothes? and why not have a look at here website:http://www.maidi2008.net 50%off ca,ed hardy t-shirt$15 jeans,coach handbag$33,air max90,dunk,polo t-shirt$13,,lacoste t-shirt $13 air jordan for sale,$35,nfl nba jersy for sale free shipping accept paypal credit card lower price fast shippment with higher quality BEST QUALITY GUARANTEE!! SAFTY & HONESTY GUARANTEE!! FAST & PROMPT DELIVERY GUARANTEE!! Packing: All the products are packed with original boxes and tags also retro cards/ code numder Features: AAA QUALITY, COMPETITIVE PRICE AND SERVICE 1) The goods are shipping by air express, such as EMS,the shipping time is in 5-7 business days 2) They are in stock now; 3) Various styles and color for clients' choice 4) The Products are fit for most people, because of our wholesale price our website: http://www.maidi2008.net

Yahoo! Finance User
Yahoo! Finance User - Tuesday November 03, 2009 12:24PM EST

Either Warren Buffett is a genius or he's getting senile, only time will tell.

Yahoo! reserves the right to refuse, or remove any comment that does not comply with the Yahoo! Terms of Service. The submission of spam, hateful, or obscene messages may result in the termination of your Yahoo! ID.
About Tech Ticker - Send FeedbackDisclaimer. Copyright © 2007 Yahoo! Inc. All rights reserved.
Copyright/IP Policy - Terms of Service - Privacy Policy - Help
Quotes delayed, except where indicated otherwise. Delay times are 15 mins for NASDAQ, NYSE and Amex. See also delay times for other exchanges.

Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes for NASDAQ, NYSE and Amex. See also delay times for other exchanges. Real-Time continuous streaming quotes are available through our premium service. You may turn streaming quotes on or off. Fundamental company data provided by Capital IQ. Financials data provided by Edgar Online. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data, daily updates, fund summary, fund performance, dividend data and Morningstar Index data provided by Morningstar, Inc. Analyst estimates data provided by Thomson Financial Network. All data provided by Thomson Financial Network is based solely upon research information provided by third party analysts. Yahoo! has not reviewed, and in no way endorses the validity of such data. Yahoo! and ThomsonFN shall not be liable for any actions taken in reliance thereon. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.