Tuesday, November 3, 2009

Well Hello, Mr. Buffett

If you follow financial news, or any news for that matter, you know what happened this morning. Warren Buffett's Berkshire Hathaway agreed to buy Burlington Northern. He already had a large stake (I believe around 20%), but this is a massive bet on the US economy. It really is classic Buffett. If you've read my blog at all, you know I'm bullish on railroads, and have felt BNI is the best out there. I don't own any shares, so I missed out on this one. Buffett isn't stealing it, but it will likely look like a good purchase five years from now.

In other news, Berkshire agreed to split their "B" shares 50 to 1, which is a big departure for them.

Buffett is clearly trying to make a statement here, and likely wanted another "signature purchase" (like Coca Cola, GEICO, or many others) to add to his legacy.

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