Posted on 11/03/2009 3:15:24 PM PST by Steelfish
Buffett's Big Bet: $34B On 2nd-Largest Railroad Freight expectations: Warren Buffett goes `all-in' with $34B bet on railroads and the economy
By Samantha Bomkamp,November 3, 2009
NEW YORK (AP) -- The biggest name in investing is making what he calls an "all-in wager" on the U.S. economy -- $34 billion to own a railroad that hauls everything from corn to cars across the country.
The acquisition of Burlington Northern Santa Fe, the nation's second-largest railroad, would be the biggest ever for Warren Buffett's Berkshire Hathaway investment company.
It's a natural fit for the Oracle of Omaha, a city with a special place in railroad history. It was the starting point for the westward push of the transcontinental railroad. Today, Omaha is the headquarters of Union Pacific, and Burlington Northern trains rumble through.
In a statement, Buffett, whose investing decisions are carefully scrutinized by the world of finance, voiced confidence in the railroad industry.
"Most important of all, however, it's an all-in wager on the economic future of the United States. I love these bets," he said Tuesday.
Berkshire Hathaway Inc. already owns a 22 percent stake in Burlington Northern and would buy up the rest under the deal, for a total value of $34 billion. It still needs approval from Burlington shareholders and antitrust regulators, both expected early next year.
Burlington Northern is the biggest hauler of corn and coal for electricity, making it an indicator of the country's economic health. It also carries everyday items such as refrigerators, clothing and TVs from Western ports like Los Angeles and Seattle.
(Excerpt) Read more at finance.yahoo.com ...
Well there are all of those Abandoned military bases that could be used as “Work Camps”.
All they need is a spur line.
Rand Paul is heading to the Senate. “Atlas Shrugged” is furiously debated on FR. And now a billionaire causes buying the railroad a vote for America’s future? I hope Buffet doesn’t go Galt on us. Well, Galt enough to quit funding liberals would be good.
“Hauling Chinese cars?”
Hauling all those cargo containers of Chinese crap to sell at Wal-Mart. That seems to be the only growth industry out there.
One of his laments at the past 2 meetings (I own a B share mainly as my admission ticket) is the shortage of things big enough to buy with Berkshire’s cash.
Exactly! I just said as much before I read down enough to see yours.
Been to Gillette...installing the centrally controlled city wide irrigation on a Computer Oriented Programming System, and landscaping at Campbell County High School (home of the Camels)... gotta go to Humphrey’s for a steak, where “a good hump is hard to find” ....and I’m not kidding.
You gotta go out West once in a while...we haul everything by rail
Hauling box cars full of PVC pipe to install irrigation on all the golf courses... “Hey Charlie, I’ll meet you at the station to load the pipe on the truck”.
Hauling all those cargo containers of Chinese crap to sell at Wal-Mart. That seems to be the only growth industry out there.”
Bingo we have a winner.
Will do, CID.
Gotta wait for the boys in Chicago to pull my name out of the hat. I've been a bad boy on the last two projects. But have behaved myself at the LOS in NoDak. Basin seems to like me.
BTW, I commission the power equipment at Power Plants. DFS goes on backfeed 15 Dec. Time to roll motors.
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