http://money.cnn.com/2007/04/07/news/companies/berkshire_bni/index.htm?cnn=yes NEW YORK (CNNMoney.com) -- Warren Buffett's Berkshire Hathaway Inc. has bought a stake of more than 10 percent in railroad operator Burlington Northern Santa Fe Corp. that's worth about $3.2 billion, according to a filing with regulators.
I assume his company is encouraged by BNSF's strong, stable, and well-organized management team, its sound business plan, and its demonstrated track record (no pun intended), all of which ensure steady profitable low-risk growth over the next decade and beyond. Although I am surprised that he would invest $3.4B because that is close to 10% of his holdings and a substantial stake in anybody's book.
Also, in the last couple of weeks, the big railroad companies have stumbled slightly in the markets. Boxcab E50
Warren Buffett and Bill Gates Bill Gates owns about 5 percent of BNSF stock. Wonder if Warren Buffet bought Gates' share plus open market purchases or if between them they now own over 15 percent of BNSF?? That's virtual control in a widely held company.
That's an interesting question. I wonder if those two are more than casually acquainted? If they were to take control, what might be done with BNSF, to bring more wealth their way? Boxcab E50
Hmmmm..... If Bill Gates had a larger stake in BNSF, I wonder if their business plan would have more "Vista"? Ouch, I wish I hadn't said that....:embarassed:
It is possible that Buffet and his organization believe that our Congressional leaders are finally coming to the realization that the highway infrastructure is saturated, and that nationwide railroad expansion must be supported by Washington. There are interesting articles and editorials in this week's National Corridor's Initiative Newsletter that address the fallout from last week's TGV demonstration. http://www.nationalcorridors.org/df2/df04092007.shtml I hope the California high-speed concept becomes successful. Because if it is, the rest of the Country will follow their lead, albeit kicking and screaming, with much gnashing of teeth....:teeth:
not sure if this is related, but I recently saw both gates and buffet on a talk show (pbs?) discussing their charitable trusts. they seemed to be in lockstep about social issues... hmmmm
here is an article I found about above. seems buffet and gates have been buddies since 1991.. interesting http://money.cnn.com/2006/06/25/magazines/fortune/charity1.fortune/index.htm
All very wealthy people become charitable nearing old age because they find they cannot fit through the eye of a needle... mg: Private-public partnerships always become public only. The railroad knows this (thank the USRA), and that's why the railroad is a paper company, owned by a corporation that keeps the real money far away from the clutching hands of the ravenous mob-pleasers. Sure, you can seize the railroad, but all you get is debt! :teeth:
This past January, Warren Buffet committed to donating about $35 Billion in Berkshire Hathaway stock to the Bill & Melinda Gates Foundation over the next few years. See the CNN report.... http://money.cnn.com/2006/06/25/magazines/fortune/charity1.fortune/index.htm
Well, yes. Obviously. But they didn't dip any truly significant amount. And it was fairly brief. Which seems too much so, for an investment such as this. So, we're looking for other reasons. Boxcab E50
Ummm... Buffett doesn't do buy low and sell high. He does buy low and sell never. Rarely does he sell, and almost never does he sell soon. So BNSF is probably in for a long haul with Mr. B.
Buffett never goes in small, many smaller companys have been bought lock, stock and barrel. Rumors are that Buffett has bought large amount of other RR's lately, UP and CSX are the name floating. And Buffett always say average lenth of owenership of a stock is forever. Adam
