Posted on Nov 04, 2009 in Economic News
Freight expectations: Warren Buffett goes `all-in’ with $34B bet on railroads and the economy
By Samantha Bomkamp, AP Transportation Writer
On 4:50 pm EST, Tuesday November 3, 2009 – Source: Yahoo Finance
NEW YORK (AP) — The biggest name in investing is making what he calls an “all-in wager” on the U.S. economy — $34 billion to own a railroad that hauls everything from corn to cars across the country.
The acquisition of Burlington Northern Santa Fe, the nation’s second-largest railroad, would be the biggest ever for Warren Buffett’s Berkshire Hathaway investment company.
It’s a natural fit for the Oracle of Omaha, a city with a special place in railroad history. It was the starting point for the westward push of the transcontinental railroad. Today, Omaha is the headquarters of Union Pacific, and Burlington Northern trains rumble through.
In a statement, Buffett, whose investing decisions are carefully scrutinized by the world of finance, voiced confidence in the railroad industry.
“Most important of all, however, it’s an all-in wager on the economic future of the United States. I love these bets,” he said Tuesday....Continue ReadingLeave a Comment