Warren Buffet Buys BNSF

Berkshire Hathaway Inc. (Warren Buffet) has agreed to buy Burlington Northern Santa Fe in a deal valuing the railroad at $34 billion.

Story HERE

 

New paint for BNSF ?

Does this mean a new swoosh or other logo or totally new paint ???

In its largest-ever acquisition, Berkshire Hathaway Inc will pay $26 billion for Burlington Northern Santa Fe Corp. Buffett said that railroads are key for U.S. growth and will blossom as the country grows.

Reuters

 

This is an important event because it shows that Warren Buffet, one of the world's sharpest non-political economic minds sees strong long-term growth for the US economy. Though I'm curious why he is focusing solely on BNSF, and not offering any comment about CSX, KCS, NS, or UP......?

 

Time to "stock" up on BNSF!!

Thanks

 

One of the great things about Berkshire-Hathaway is they buy companies and leave them alone. They don't immediately replace or change things. They research and buy solid businesses and let them continue to do what they have done to be successful. BNSF will look and operate the same.

 

And they didn't ask me about it. Hurrrumph! No offense meant toward anyone here. Just a little speculation and across the table dry humor.!

This probably means big changes. The BNSF railroad will change it's name to the Warren Buffet Railroad and the letters will change to WB on the side of the locomotives. One can only hope the gawdy orange pumpkin's gets tamed down and the power bar disappears.

Now, let's go buy up a eastern railroad. How about NS? Then we can have the letters WBNS on the sides of the engines and have black locomotives with a thoroughbred horse galloping along. Maybe a throw back to silver barrier stripes on each end of the locomotive.

This just hit me. WB which could stand for the Western Burlington Railroad.

Let the rumors begin.

Oh, this is going to be fun! baffled:

Seriously, what I wouldn't give to see the Santa Fe come back and be restored to it's original glory. Me thinks I know better...naw, that won't happen.

 

Remember these old topics:

• 2007 Buffet buys 10% of BNSF
• 2008 Warren Buffett Buys more BNSF Railway Shares.

:tb-nerd: :tb-nerd: :tb-nerd: :tb-nerd:​

 

Buffet has shown signs of being peak-oil aware. He probably realizes that under such a scenario railroads are a less risky investment than most other things. Since railroads transport freight at approximately 4 times the efficiency of trucks, their importance and competitive advantage should increase in the coming years, assuming oil prices continue their upward trend. If he's going for BNSF instead of UP, that may simply reflect a better relationship with their management. (I think it's fair to say that UP is known for being territorial.)

Buffet is known for carefully considering investments, and only investing in companies whose business he feels he truly understands. (If it were possible to require all investors to behave this way by law, that would be a good thing, but that's getting off topic...). AIG tried to sell to him when they were collapsing last year (before the gov't bailout), but he wouldn't go for it. He prefers to invest in the real economy, not credit-default-swaps.

 

Hmm, so now both Western roads are based out of Omaha.

 

Not yet, but maybe soon.

 

The railroad's name won't change. But now BNSF will mean, "Buffet Now Ships Freight."

 

This is the reason:



BNSF is the leading RR in coal hauling, and owns trackage in the most coal-rich parts of the country. Buffet is banking on the use of coal and cleaner coal technologies as part of America's energy future. Some details here: http://in.reuters.com/article/oilRpt/idINL365253220091103

 

I wouldn't consider Reuter's India to be a difinitive source, especially since they don't quote him. Though it's a fair bet that the Coal based loadings are a major source of the appeal.
Buffet is generally speaking considered to be a liberal populist, a pragmatist. I find it hard to believe that he's a clean coal supporter. I think it's more likely that he sees the advantage of high speed rail corridors, and advantages for use of the right of way.

One big advantage BNSF has over say UP is the amount of fiberoptic cable buried on the property. So they get money for that backhaul service even when no train is on the rail.

 

I think he is looking at key location. Because BNSF runs almost all over Northern part of the U.S. Close to Canada good trading opportunity.:thumbs_up:

 

Ehht

I think its funny, Since he Lives in Omaha, UP's HQ that he now owns BNSF.

 

Since Buffet also owns Geico, does that mean the new corporate mascot will be that little lizard?

 

Ya NS as the horse can we put the Geico lizard on the front of the engines.
Adam

 

Buffett is known for leaving the companies he buys alone to do business the way they know how. He doesn't buy companies in order to strip them down. That's one of the reason he's so well respected.

 

According to this article Buffet is also a "model train buff." I didnt' know that.

 

That article says Buffett also owns GE. I guess we know where all future BNSF locomotives will come from.