In stunning show of American leadership, multi-billionaire Warren Buffet is letting his actions (and not his words) speak for where he see's the economy heading. The long term global demand for crude undoubtedly faces an upward trend, which does not bode well for those industries tied to a "lower fuel cost --> high revenue" model. As a global economic recovery gets into full stride; we will begin to realize what increased global demand does to price.Nov. 3 (Bloomberg) -- Berkshire Hathaway Inc. agreed to buy railroad Burlington Northern Santa Fe Corp. in the company’s biggest takeover under Warren Buffett.
Buffett’s firm will buy the 77.4 percent of the railroad it doesn’t already own for $100 a share in cash and stock, valuing the transaction at about $44 billion, including $10 billion in outstanding debt, Omaha, Nebraska-based Berkshire said in a statement today distributed by Business Wire. That compares with the railroad’s closing price yesterday of $76.07.
A highly efficient rail system to haul bulk might turn out to quite the gem in a decade or so. Or at least Mr. Buffet believes it. I like his attitude!
The rest of the article can be found here“It’s an all-in wager on the economic future of the United States,” Buffett said in the statement."