# Berskshire Hathaway buying BNSF



## Pete Chimney (Jan 12, 2008)

I saw on the Yahoo financial page this morning that Barkshire Hathaway and the BNSF BODs have agreed for BH to purchase BNSF. BH had already owned some 22% of the stock in BNSF.


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## chuckger (Jan 2, 2008)

Hi Pete,

CNN said 440 billion, kind of an expensive train set for Warren Buffet. But he can afford it I guess.

Chuck


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## Pete Chimney (Jan 12, 2008)

If true as reported, then CNN has one too many zeroes in their report, the announced price is 34 billion, not 440 billion.


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## Semper Vaporo (Jan 2, 2008)

What was it Senator Dirkson used to say... "A billion here and a billion there and pretty soon you are talking about real money!"


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## chuckger (Jan 2, 2008)

Hey Pete,

Most likely you'r correct at 34, I was comming up from the basement when I heard the amount, it's still a big bunch of money.

Chuck


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## Bill4373 (Jan 3, 2008)

Senator Dirksen was from Illinois. The other senator from Illinois restated it, "A trillion here, a trillion there, someone elses money is being spent"


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## Torby (Jan 2, 2008)

We apologize for our senators, however, *you* elected him president


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## Richard Weatherby (Jan 3, 2008)

I own some of BNSF. I guess it is me and Warren who get to play trains. Maybe Monopoly next. I got lots of play money.


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## Jerry McColgan (Feb 8, 2008)

Berkshire Hathaway will acquire unowned stake of railroad in a cash-and-stock deal worth $44 billion.

http://money.cnn.com/2009/11/03/new...2009110408

NEW YORK (CNNMoney.com) -- Warren Buffett's Berkshire Hathaway said Tuesday it will buy railroad operator Burlington Northern Santa Fe for $44 billion.
Berkshire (BRKA, Fortune 500), which already has major stake in Burlington Northern, said it would acquire the remaining 77.4% of the company in a cash-and-stock offer worth $100 per share.


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## Torby (Jan 2, 2008)

Seems to me they're not ones to make rash investments.


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## Pete Chimney (Jan 12, 2008)

I believe Warren Buffet saw a great opportunity to buy at the bottom of a business cycles. 

By some reports there are some 5-6,000 locomotives idle in the US and 150,000-200,000 railcars. When the economy rebounds, which some data suggests may be starting, these idled assets will be back in use and generating revenue.


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## Jerry McColgan (Feb 8, 2008)

*Widely regarded as both one of the world's richest men and the investment community's more brilliant minds, Buffett called his firm's investment an "all-in wager on the economic future of the United States."*
*"Our country's future prosperity depends on its having an efficient and well-maintained rail system," Buffett said in a statement. *

I think it is great that one of the world's smartest and richest individuals sees the railroads as playing a major part on the future prosperity of the USA.

Perhaps the USA will regain its position as being the country with the worlds greatest rail transportation system. As Warren Buffet spins his magic we might see an accompanying rebirth of the model railroading hobby.

It is nice to read of Warren Buffet's efforts to rebuild the US economy (not just with trains) and he is putting his money where it will do the most good - into the US economy rather than just playing the world financial markets. 

Jerry


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## aceinspp (Jan 2, 2008)

Well it's all good speculation. Got to wait to see if approval is given by the various Gov agency and weather the stock holders approve it. Just what we need is another non RR guy buying a RR and not knowing what to do with it . If he's smart he will let the folks run it and continue to make money. Bottom line is some time 2010 till you here weather he gets it or not. Later RJD


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## John J (Dec 29, 2007)

Ok I am Confused. What about the stockholders who had stock before Waren stepped in? Does this mean they have no stock in the Rail Road Any more?


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## armorsmith (Jun 1, 2008)

Gents, 

I saw an interview with Warren Buffet a couple of years ago, and he was asked why he never got into the dot COM boom. His answer was that he did not invest in any business he doesn't understand the business model of. That being said, I would believe that Warren understand the transportation industry model, railroads in particular, and is prepared to take hold of the throttle and make some money. 

As for the stockholders, It was my understanding (based on the early published information) that they were purchasing all the stock at a premium and the stock holders were expected to accept/approve the offering. 

My tuppence worth. 

Bob C.


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## Spule 4 (Jan 2, 2008)

Exactly, and part of why the Berkshire Hathaway B (BRK B) stock is seeing a 50-1 split to generate interest cash and some options of swapping for the $100 per share offer for BNSF. 

In the same breath tho, no one has said a word about him dumping all his UP and NS shares before this deal was set up either.


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## aceinspp (Jan 2, 2008)

Well he may think he know transportation but I guess he read it some where. Yep got to dump stock if it looks like you are creating a monopoly. Bottom line I'll believe that he gets it when they say ok. The other scary factor is he buys it makes boo coo money and returns none to the property and then he bails out leaving the RR broke and run down. Seen that scenario a bunch. Later RJD


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## Randy Stone (Jan 2, 2008)

With all the companies and land being bought up by foriegn interest, I'm all for Warren Buffet and his American company buying one of our most important infrastructure businesses. 

The Berkshire Hathaway company is an American owned company. This means that not only the American employees have employment and monies to spend but it also means the profit gains by Berkshire Hathaway, stay in the United States to be invested in more aquititions or spent by the stock holders as they wish. 

Randy


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