11-03-2009, 02:44 PM
Warren Buffett/Berkshire Hathaway, al;ready owners of 22% of Burlington northern's stock, is buying the entire railroad for $34 billion.
It will be interesting to see what effect this has locally, as the line passes right through Palmer Lake, not far from my location.
Quote:NEW YORK - Warren Buffett has made bets on railroads before, but now he's all in. The billionaire investor's Berkshire Hathaway Inc. on Tuesday agreed to buy Burlington Northern Santa Fe Corp., making a $34 billion bet on the future of the U.S. economy.<!-- m --><a class="postlink" href="http://www.msnbc.msn.com/id/33599744/ns/business-us_business/">http://www.msnbc.msn.com/id/33599744/ns ... _business/</a><!-- m -->
Burlington Northern, the nation's second-largest railroad, is the biggest hauler of food products like corn, and coal for electricity, making it an indicator of the country's economic health. The railroad also ships a large amount of consumer goods — including items imported from Asia — from big Western ports like Los Angeles and Seattle.
Analysts say Buffett is planting both feet in an industry that is poised to grow as the economy gets back on solid ground. It would be the biggest acquisition ever for Berkshire Hathaway Inc.
It will be interesting to see what effect this has locally, as the line passes right through Palmer Lake, not far from my location.