FARK.com: (4744467) Buffett, who already owns an electric company, will buy Burlington Northern Railroad. Next up: Water Works

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		Buffett, who already owns an electric company, will buy Burlington Northern Railroad. Next up: Water Works (finance.yahoo.com)		60
		More: Spiffy

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1677 clicks; posted to Business » on 03 Nov 2009 at 12:12 PM | Favorite | share:

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Dead for Tax Reasons

2009-11-03 11:09:32 AM

he's buying up all these companies, pretty soon he gonna have a...um...uh...i can't think of the word

veedeevadeevoodee

2009-11-03 11:35:35 AM

FishyFred

2009-11-03 11:49:49 AM

Who?

Minarets

2009-11-03 11:56:55 AM

Dead for Tax Reasons: he's buying up all these companies, pretty soon he gonna have a...um...uh...i can't think of the word

He's gonna be sorry? He's gonna have less risk?

Guelph35

2009-11-03 12:14:10 PM

Dead for Tax Reasons: he's buying up all these companies, pretty soon he gonna have a...um...uh...i can't think of the word

Margaritaville?

UNC_Samurai

2009-11-03 12:16:03 PM

Are you people mad? We can't allow Warren Buffett to acquire F40PHs! He'll be unstoppable!

JoeCowboy

2009-11-03 12:18:07 PM

Dead for Tax Reasons: he's buying up all these companies, pretty soon he gonna have a...um...uh...i can't think of the word

YAHTZEE

JC

aearra

2009-11-03 12:22:59 PM

Great headline subby. Very droll.

AnotherDisillusionedCollegeStudent

2009-11-03 12:23:07 PM

Cool. I wouldn't be surprised if BNSF starts electrifying soon - Buffett is really big on increasing the value of his investments through capital expenditures.

jack21221

2009-11-03 12:24:47 PM

Dead for Tax Reasons: he's buying up all these companies, pretty soon he gonna have a...um...uh...i can't think of the word

Hotels on blue?

Ball of Confusion

2009-11-03 12:40:24 PM

UNC_Samurai: Are you people mad? We can't allow Warren Buffett to acquire F40PHs! He'll be unstoppable!

BNSF only operates the METRA F40PHm for the RTA. I don't think they have any on the roster.

The idea of Warren Buffet with ES44AC and SD70ACe is intriguing.

PolarBoy

2009-11-03 12:45:10 PM

Aw, criminy.

simpsons.neoseeker.com

CrankMyBlueSax

2009-11-03 12:48:17 PM

If he gets Boardwalk, game over.

The Dreaded Rear Admiral

2009-11-03 12:50:45 PM

That ~~hotel's~~ electric company's a dump and your monopoly's pathetic!

AmazinTim

2009-11-03 12:53:57 PM

Picture of their CEO:
news.gotgame.com

html_007

2009-11-03 12:55:26 PM

Ball of Confusion: UNC_Samurai: Are you people mad? We can't allow Warren Buffett to acquire F40PHs! He'll be unstoppable!

BNSF only operates the METRA F40PHm for the RTA. I don't think they have any on the roster.

The idea of Warren Buffet with ES44AC and SD70ACe is intriguing.

They also have a couple of SD60's and a couple GP7 road switchers still floating around as well.

Sin_City_Superhero

2009-11-03 01:01:24 PM

Just gonna leave these here:

thefurtiveglance.com

cfreak

2009-11-03 01:14:45 PM

Glad to see there are other railroad nerds on Fark.

I wish Buffet would experiment with passenger service or electrification but I don't really see it anytime soon.

Accent

2009-11-03 01:16:55 PM

fark Monopoly

CarcinogenCrunchies

2009-11-03 01:22:01 PM

Maybe he'll bring some of its operations back to Burlington, where they belong. Not likely, though, since the city council insists upon continually pissing them off with lawsuits, quiet zones and other nonsense.

2chris2

2009-11-03 01:30:13 PM

cfreak: Glad to see there are other railroad nerds on Fark.

I wish Buffet would experiment with passenger service or electrification but I don't really see it anytime soon.

CarcinogenCrunchies: Maybe he'll bring some of its operations back to Burlington, where they belong. Not likely, though, since the city council insists upon continually pissing them off with lawsuits, quiet zones and other nonsense.

Warren Buffet doesn't run the companies he buys. His Berkshire Hathaway holding company owns lots and lots of companies, which he allows other people to run who actually know a lot about the particular industries the company deals with.

He buys good, well run companies, and then makes no changes whatsoever in them.

Wendy's Chili

2009-11-03 01:35:10 PM

Mmmm, Buffet...

He's got to be the most appetizing-sounding venture capitalist I know.

Galius_Persnickety

2009-11-03 01:41:12 PM

I would pay to see Buffet dressed in top hat and spats operating a locomotive...

andrewhy

2009-11-03 01:59:38 PM

AmazinTim: Picture of their CEO:

I came in here just for that. Thank you.

taylonr

2009-11-03 02:50:35 PM

So BNSF & UP will now be Omaha companies? In the sense that Warren is an Omahaian...I'm sure they won't be building an office here anytime soon.

Chotchkie's

2009-11-03 03:14:26 PM

Saw the story on CNN.com, immediately knew there would be a Monopoly-themed headline on Fark. Glad I was not disappointed.

brandied

2009-11-03 03:25:41 PM

Guelph35
Dead for Tax Reasons: he's buying up all these companies, pretty soon he gonna have a...um...uh...i can't think of the word

Margaritaville?

*I* see what you did there... Parrotheads unite.

The Power of Positive Drinking

2009-11-03 03:26:49 PM

I was never good at Monopoly. That must be why I am not rich.

/also not good at Clue, Risk or Chess
//very good at Scrabble, so I have that

EdNortonsTwin

2009-11-03 03:41:49 PM

The Power of Positive Drinking: I was never good at Monopoly. That must be why I am not rich.

/also not good at Clue, Risk or Chess
//very good at Scrabble, so I have that

It's good you know where your talents are and that no one has to spell it out for you.

EdNortonsTwin

2009-11-03 03:56:00 PM

This is probably a silly place to mention this, but I routinely check the following web site from market open-to-close every day:

Link (new window)

Riding the waves that appear from time to time I've made about 10% on my money in the past 12 months on "short term" or so with only basic knowledge of the market (in/out). I don't have the huevos to short sell. Bigger huevos, and I could have made a hell of a lot more, but it's already gambling as far as I'm concerned and, hell, I haven't lost money. So there's that.

Anyway, anyone else here day trade? Have any favorite sites?

The problem with the page I've posted is that it's showing you gainers w/ 15 minutes delay. I have to actually go to each company summary to see the real-time ask on yahoo.

Harvey Manfrenjensenjen

2009-11-03 04:09:06 PM

Two questions, wondering if anyone can shed some light...

1. Why pay $100/share when it was trading in the 70s? Seems like you'd quietly buy up some at the current price and then strike with an $80-90 offer. I'm guessing he's trying to prevent rival bids, but $100 seems to be a bit of a premium.

2. Why buy the whole company and not 51%, 66% or 75%?

Not second-guessing his strategy at all, just trying to figure out what it is.

Clarence Potter

2009-11-03 04:24:11 PM

Harvey Manfrenjensenjen: Two questions, wondering if anyone can shed some light...

1. Why pay $100/share when it was trading in the 70s? Seems like you'd quietly buy up some at the current price and then strike with an $80-90 offer. I'm guessing he's trying to prevent rival bids, but $100 seems to be a bit of a premium.

2. Why buy the whole company and not 51%, 66% or 75%?

Not second-guessing his strategy at all, just trying to figure out what it is.

Warren has trouble moving silently, esp in this market. He seems the kind who prefers to pay the premium than have the hassle of speculators guessing his moves. #2: The more he owns, the more chances to realize profit on the way up while still keeping control of things. Opportunity Cost, and all that jazz. If he owns 100%, wants to sell 1%, he still has 48 other 1% blocks he can sell before he has to worry about control.

Snarky Acronym

2009-11-03 04:25:24 PM

Harvey Manfrenjensenjen: Two questions, wondering if anyone can shed some light...

1. Why pay $100/share when it was trading in the 70s? Seems like you'd quietly buy up some at the current price and then strike with an $80-90 offer. I'm guessing he's trying to prevent rival bids, but $100 seems to be a bit of a premium.

2. Why buy the whole company and not 51%, 66% or 75%?

Not second-guessing his strategy at all, just trying to figure out what it is.

Just a guess: as an article I read earlier about this buy, someone mentioned that the $100 offer price was "so like Warren" to have an even number. As a ~30% premium, it pretty much shuts down any counter offer that anyone is likely to make.

He is buying the whole company. He previously owned about ~22% of BNI. Now he's snapping up the rest plus their $10B in debt. As a BNI share holder I gotta tell you I'm a happy camper today. Not taking the cash offering but going for the offer of Berkshire Hathaway stock that will be offered in exchange for my shares of BNI.

Clarence Potter

2009-11-03 04:27:29 PM

Snarky Acronym: Not taking the cash offering but going for the offer of Berkshire Hathaway stock that will be offered in exchange for my shares of BNI.

A very wise move!

Snarky Acronym

2009-11-03 04:28:51 PM

Plus he has billions in cash that was being lazy and I believe he usually likes to buy companies outright after buying a chunk first.

Snarky Acronym

2009-11-03 04:31:39 PM

Clarence Potter: Snarky Acronym: Not taking the cash offering but going for the offer of Berkshire Hathaway stock that will be offered in exchange for my shares of BNI.

A very wise move!

Thanks. I think the Berkshire Hathaway board declared a 50-1 split on the "B" stock so minor investors of BNI (like me) would be getting whole shares and not fractions.

Feldspar Q. Walrustitty

2009-11-03 04:42:13 PM

In other news, BRK.B is supposed to undergo a 50 to 1 split soon, which will price it in the low $60 range and allow losers like us to get in on the action.

FishyFred

2009-11-03 04:43:01 PM

Feldspar Q. Walrustitty: In other news, BRK.B is supposed to undergo a 50 to 1 split soon, which will price it in the low $60 range and allow losers like us to get in on the action.

How much money do the folks who already have the shares get for that?

Snarky Acronym

2009-11-03 04:48:06 PM

FishyFred: Feldspar Q. Walrustitty: In other news, BRK.B is supposed to undergo a 50 to 1 split soon, which will price it in the low $60 range and allow losers like us to get in on the action.

How much money do the folks who already have the shares get for that?

Not sure if I understand your question. If you own BNI, you'll be getting $100 a share. If you own BRK.B, the value of your investment won't change but the number of shares you own will increase. Clear as mud?

mesohorny

2009-11-03 04:48:22 PM

worst investment evar. the railroad industry isn't exactly growing.

should have invested in electric cars or air powered ones.

Snarky Acronym

2009-11-03 04:54:07 PM

mesohorny: worst investment evar. the railroad industry isn't exactly growing.

should have invested in electric cars or air powered ones.

Not sure if serious...but no one is likely to be building a new railroad anytime soon. And railroads are the most fuel efficient method of moving cargo (except for a pipeline) that there is. So if diesel prices go up, truckers are going to have to charge more for long haul as opposed to RR's which won't take as big a hit on increasing energy prices.

AnotherDisillusionedCollegeStudent

2009-11-03 05:02:32 PM

NewportBarGuy

2009-11-03 05:02:33 PM

I love Warren Buffett. If more people were focused on the long term investment mindset, this country would begin its climb out of the morass we are in.

Rock on, Warren.

Masso

2009-11-03 05:12:27 PM

Good to see he put his money where his mouth is.

hp6sa

2009-11-03 05:26:49 PM

Clarence Potter: Harvey Manfrenjensenjen: Two questions, wondering if anyone can shed some light...

1. Why pay $100/share when it was trading in the 70s? Seems like you'd quietly buy up some at the current price and then strike with an $80-90 offer. I'm guessing he's trying to prevent rival bids, but $100 seems to be a bit of a premium.

2. Why buy the whole company and not 51%, 66% or 75%?

Not second-guessing his strategy at all, just trying to figure out what it is.

Warren has trouble moving silently, esp in this market. He seems the kind who prefers to pay the premium than have the hassle of speculators guessing his moves. #2: The more he owns, the more chances to realize profit on the way up while still keeping control of things. Opportunity Cost, and all that jazz. If he owns 100%, wants to sell 1%, he still has 48 other 1% blocks he can sell before he has to worry about control.

It also doesn't hurt that his 22% ownership in BNI just dramatically jumped on BRK-B's balance sheet... it will make his next 10-Q look a little better, too.

/subby. Loves Monopoly, and Warren Buffett, but in very different ways.
//realized I misspelled Buffett in the headline.

sirrerun

2009-11-03 05:38:49 PM

Not a repeat from 2007 (new window), apparently.

akula

2009-11-03 05:40:05 PM

Snarky Acronym: mesohorny: worst investment evar. the railroad industry isn't exactly growing.

should have invested in electric cars or air powered ones.

Not sure if serious...but no one is likely to be building a new railroad anytime soon. And railroads are the most fuel efficient method of moving cargo (except for a pipeline) that there is. So if diesel prices go up, truckers are going to have to charge more for long haul as opposed to RR's which won't take as big a hit on increasing energy prices.

Not only that, but now is a bad time in the rail industry. About 1/3 of rolling stock is sitting idle, waiting for the economy to pick up. Once it does, the rail companies will increase revenue and profits rather substantially; now is a great time to buy.

Additionally, if we start talking about environmental initiatives, the railroads stand to gain immensely. It's MUCH more efficient to move freight by rail than by truck. Not only are we likely to see this in increased fuel fees (as said) that will push shippers to rail, but it also involves highway funds- the government usually doesn't bother keeping up rail infrastructure (cheaper for the .gov), and it will take pressure off an already strained highway system.

It is looking like BKW did their homework and is getting not a bad deal on this. They already own a fair amount of Union Pacific too, so I'd expect other groups to be looking at getting into the other railroad companies as well. It may well become a trend.

JasonOfOrillia

2009-11-03 06:46:07 PM

The down economy has created quite the smörgåsbord for the Oracle of Omaha.

dustman81

2009-11-03 07:10:08 PM

2chris2: Warren Buffet doesn't run the companies he buys. His Berkshire Hathaway holding company owns lots and lots of companies, which he allows other people to run who actually know a lot about the particular industries the company deals with.

He buys good, well run companies, and then makes no changes whatsoever in them.

THIS. He is an investor in the true sense of the word. He knows better that to mess with what works. He makes only one demand of the operators of his companies when he buys it: Tell me what I need to do if you were to leave/die.

Linux_Yes

2009-11-03 07:15:02 PM

i wonder which group of Communist Chinese investors will buy the U.S.A.???

lol lusers.

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