Buffett continues his ride on the rails

Posted Aug 8th 2007 9:45PM by Eric Buscemi
Filed under: Berkshire Hathaway (BRK.A)

It's a big deal whenever Warren Buffett so much as sneezes, and this morning was no different. Berkshire Hathaway's (NYSE: BRK.A) decision to boost its stake in Burlington Northern Santa Fe (NYSE: BNI) made the expected splash, and up went Burlington's stock 3%.

Back in April, Berkshire disclosed an 11% stake in Burlington, and then in May it announced investments in two other railroads: Norfolk Southern Corp (NYSE: NSC) and Union Pacific Corp (NYSE: UNP). Buffett clearly sees value in riding the railroads.

Then today came Berkshire's disclose that it had raised its stake from August 3 through August 7 to 11.5% from 11% -- which, while not exactly earth shaking, is a strong indicator that Buffett sees the recent price weakness enveloping the market as a buying opportunity. Usually when the "oracle" Mr. Buffett sees something, it is worth paying attention.

Tags: berkshire hathaway, BerkshireHathaway, bni, brk.a, buffett, burlington, inthenews, norfolk southern, NorfolkSouthern, nsc, rail, railroad, union pacific, UnionPacific, unp, warren buffett, WarrenBuffett

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Reader Comments (Page 1 of 1)

8-09-2007 @ 12:09AM

Michael Schneider said...

He also picked up some Kraft. Seems like he and Carl Icahn are seeing some of the same things these days- both buying rails, both buying Kraft.

Many items on Warren Buffett and other great billionaire investors are in the new Billionaire Watch section at http://www.Barrelomoney.com including some just posted items.