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Car Forum / Driving, Maintenance, Tuning / Driving / November 2009

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Buffet to buy a railroad.

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Brent - 03 Nov 2009 23:19 GMT
http://finance.yahoo.com/news/Buffetts-Berkshire-buying-apf-3016566039.html?x=0&
sec=topStories&pos=2&asset=&ccode
=

"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."

  -----------

My guess is Obama and company have regulation and tax policy coming that
will favor rail.
elmer - 03 Nov 2009 23:35 GMT
> http://finance.yahoo.com/news/Buffetts-Berkshire-buying-apf-3016566039.html?x=0&
sec=topStories&pos=2&asset=&ccode
=
>
[quoted text clipped - 10 lines]
> My guess is Obama and company have regulation and tax policy coming that
> will favor rail.

Let's hope he doesn't strip out the equity and sell off the scraps so a
Chinese Government Company can then operate America's railroads.
Scott in SoCal - 04 Nov 2009 04:09 GMT
Last time on rec.autos.driving, elmer <e@f.udd> said:

>Let's hope he doesn't strip out the equity and sell off the scraps so a
>Chinese Government Company can then operate America's railroads.

When has Warren Buffet *ever* done that?
Scott in SoCal - 04 Nov 2009 04:08 GMT
Last time on rec.autos.driving, Brent
<tetraethylleadREMOVETHIS@yahoo.com> said:

>http://finance.yahoo.com/news/Buffetts-Berkshire-buying-apf-3016566039.html?x=0&
sec=topStories&pos=2&asset=&ccode
=
>
[quoted text clipped - 5 lines]
>second-largest railroad, would be the biggest ever for Warren Buffett's
>Berkshire Hathaway investment company."

Mr. Buffet is clearly a man of vision. This is by far the largest
acquisition he has made in his long and profitable career. And, since
he only invests for the long term, he must be extremely certain of the
future profitability of the BNSF.

Perhaps he sees, as I do, that we as a nation will never be able to
build our way out of road congestion, and that rising fuel prices will
force a pendulum swing back toward rail transport for long-haul
shipments.

Whatever it is that has attracted his interest, I certainly place a
lot more faith in the vision and judgment of Warren Buffet than I do
in rail-haters like Jack and George. It will be ever-so-sweet to see
these fools proven wrong once and for all. :)
Clark F Morris - 04 Nov 2009 17:13 GMT
>Last time on rec.autos.driving, Brent
><tetraethylleadREMOVETHIS@yahoo.com> said:
[quoted text clipped - 23 lines]
>in rail-haters like Jack and George. It will be ever-so-sweet to see
>these fools proven wrong once and for all. :)

Since BNSF is not a passenger railroad and George Conklin has many
times stated that freight rail makes sense and should be supported,
not encumbered with passenger requirements, I don't see George being
proved wrong by Buffet benefiting from the BNSF acquisition.
Larry Sheldon - 04 Nov 2009 17:32 GMT
> Since BNSF is not a passenger railroad and George Conklin has many
> times stated that freight rail makes sense and should be supported,
> not encumbered with passenger requirements, I don't see George being
> proved wrong by Buffet benefiting from the BNSF acquisition.

Didn't think I'd ever see that admission here!

Hallelujah!

(Amtrack runs on BNSF through here--about the only passenger trains we see.)

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Matthew Russotto - 04 Nov 2009 16:53 GMT
>http://finance.yahoo.com/news/Buffetts-Berkshire-buying-apf-3016566039.html?x=0&
sec=topStories&pos=2&asset=&ccode
=
>
[quoted text clipped - 10 lines]
>My guess is Obama and company have regulation and tax policy coming that
>will favor rail.

That's not even a secret.  The only thing that could bite Buffett in
the butt is if Obama is ineffective at getting said policy passed.
However, in Buffett's case, since he's not an idiot, the company is
likely sound in the first place and that "worst case" will just mean
somewhat smaller profits, not losses.
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someone with less ability and more need.

richard - 04 Nov 2009 18:05 GMT
> http://finance.yahoo.com/news/Buffetts-Berkshire-buying-apf-3016566039.html?x=0&
sec=topStories&pos=2&asset=&ccode
=
>
[quoted text clipped - 10 lines]
> My guess is Obama and company have regulation and tax policy coming that
> will favor rail.

How soon before da man asks obama for a bail out?
 
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