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Thread: Berkshire Buys Burlington in Buffet's Biggest Deal

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    Berkshire Buys Burlington in Buffet's Biggest Deal

    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.
    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.

    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!

    It’s an all-in wager on the economic future of the United States,” Buffett said in the statement."
    The rest of the article can be found here
    Last edited by Kushinator; 11-03-09 at 10:04 AM.
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    Re: Berkshire Buys Burlington in Buffet's Biggest Deal

    Quote Originally Posted by Goldenboy219 View Post
    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.

    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

    Interesting! Thx for posting.

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    Re: Berkshire Buys Burlington in Buffet's Biggest Deal

    Quote Originally Posted by Goldenboy219 View Post
    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.
    I've always liked Buffett's maxim: "Be fearful when others are greedy, and be greedy when others are fearful." Some excellent investing advice.
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    Re: Berkshire Buys Burlington in Buffet's Biggest Deal

    Quote Originally Posted by Goldenboy219 View Post
    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.

    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

    This is the biggest investment he has ever. It is something twice of the his last biggest investment. He must be pretty confident.

    Factoid:

    On one gallon of diesel one ton can be shipped 400 miles.

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