At 79-years old the “World’s Second Richest Man” Warren Buffett just made his biggest deal EVER – dropping $44 billion so his Berkshire Hathaway will own %100 of Burlington Northern Santa Fe which is a freight rail line that covers a large portion of the United States. According to the WSJ:
In a brief chat with CNBC this morning, Buffett described how the deal came together fairly quickly after meeting recently with Burlington Northern chief executive Matt Rose. “I made him an offer and he said it would take it to his board and it took about fifteen minutes,” Buffett told CNBC.
The rationale for the deal? “It’s a bet on the country basically,” Buffett told CNBC, adding that as the country recovers from this recession, there will be an increased demand to move goods. “They do it in a very cost effective way [and] they do it in an extraordinarily environmentally friendly way,” Buffett said of railroads.
{ 4 comments… read them below or add one }
What’s funny is that they said that the deal he made with Goldman Sachs was bad… I wonder what they will say about this deal?
I am sure glad I read a book he recommended… changed my investing life (and what I want to do with my business as well).
I think this is a good deal and a great way to set up for future profits when/if we come out of the recession. My (rich) uncle tells me that there are 4 tings that run the economy: telecommunications, banking/finance, infrastructure and TRANSPORTATION. I guess Buffet was listening to my uncle lol
@BGAS What book did he recommend?
@BGAS What book did he recommend?
Fuck W. Buffet. May his body decompose before he actually Dies.