WARREN BUFFET STAKES $26 BILLION ON ECONOMIC RECOVERY

Written by admin on December 2nd, 2009

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One of the nation’s most visionary leaders, Warren Buffet, of Berkshire Hathaway is planning a $26.3 billion buyout of the BNSF Railway. Some analysts see this move as an “all in wager” on the American economy by bringing the nation’s second largest railroad under his control. Many experts believe this move will allow the BNSF Railway to reshape its network and make the other major railroads envious of its leadership. Investors believe the BNSF will be challenged to generate larger than normal profits for the privately held Berkshire Hathaway organization. You can be sure if Buffet is involved, small profits will be a thing of the past.

Many industry leaders believe BNSF will change the face of shipping for the future by taking more aggressive actions to move freight off the highways and onto the rails, strike longer contract deals with major shippers and ocean carriers and convince new shippers to open up plants and distribution centers along the BNFS tracks.

Buffet stated in a recent Journal of Commerce article, “Our country’s future prosperity depends on its having an efficient and well maintained rail system. Conversely, America must grow and prosper for railroads to do well.” This purchase is Berkshire’s largest ever investment.

 

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