http://finance.yahoo.com/news/Berks...39.html?x=0&sec=topStories&pos=1&asset=&ccode But, according the the Forbes 400 list, Buffett doesn't have that much. Not even Bill Gates has that much. A quote from the news release: >>>>> "Berkshire's $34 billion investment in BNSF is a huge bet on that company, CEO Matt Rose and his team, and the railroad industry," Buffett said in a statement. "Most important of all, however, it's an all-in wager on the economic future of the United States. I love these bets," he said. >>>>> Railroads are back.
Agreed, Doug. I remember seeing a Baron's at the airport in NYC last summer (before the economy got really screwy) with a feature article that railroads were bound to prosper in an era of higher fuel prices. The gist seemed to be that the railroads could haul freight much more cost-effectively than the trucking industry. And, I've noticed a lot more in the way of TV and print advertising for the major carriers (particularly CSX and NS) in the last year. So I guess this means that Omaha will now be HQ to two major railroads (I'm assuming it is still home base for Uncle Pete). Thanks for the link...
Time to lay track on all those hiking trails? Doesn't Warren Buffett still live in a small Omaha house?
Yes, he lives in a very modest home and he still drives an old car - an old Lincoln or Oldsmobile or something. The US railroads have been a very good investment area for about the last five-six years, though they did suffer like everything else over the last year. We've been shareowners in BNI (BNSF), CNI (CN), NSC (NS), KSU (KCS), and UNP (UP) for many years, and they each have been among our best investments. As of today, my BNI is worth $98-$100 per share! Thanks "Oracle"! The reason he wanted BNSF is, of course, its Frisco heritage. Why else would the "Oracle of Omaha" had gone after BNSF instead of his home town UP? (*) Ken (*) Answer - Because the BNSF is a better run railroad, in spite of its crazy locomotive paint scheme.
Ken, that precisely jives with many of the reports I've read. Any Berkshire-Hathaway acquisition seems to have a strong management team/program before they'll be picked up. Perhaps a long tradition of solid Frisco successor company management continues (didn't the BN annoint Richard Grayson as the "New BN CEO" after the merger?).
Yes. Louis Menk knew well the fine railroad management team he obtained when the BN "merged" with the SLSF. Also quickly moving to St. Paul were many of the SLSF operating people, who were quickly assigned the task of getting the screwed-up BN back up on its feet operationally. They called it a merger, but it really wasn't - it was a gobble-up. Ken
Does this mean we stop hating "BN" and start hating "B-H?" This is a strong vote of confidence for the current management, as earlier posts in the thread indicate. Not only does Berkshire-Hathaway seek well-managed, strong companies, but once they acquire them, they tend to let the current management continue their plans. Louis Menk was also a Frisco railroad executive who moved over to what became BN in 1966 when he became president of the CB&Q. From there, he went to the NP and helped build the BN. By the way, there is a blank in his Wikipedia article for who preceded him as Frisco president. Wikipedia mentions J. W. Gilliland as his successor. Here is an opportunity for someone to offer Frisco knowledge for a wider audience. It is way too early to return all the trails to rail. Maybe make a couple highways into bike trails would be a good idea.
Warren Buffet buying a corporation (yawn) isn't news! He and his ilk play with corporations like we play with trains! Wake me if he brings back steam engines and passenger trains! Tom
Now I don't mind the orange & black......after all, it was my high school and college colors. However, if they could,ahem,change it to, say, Mandarin orange & white, I could get behind it. Give the orange & black back to the Milwaukee Road fans- after all, it's their scheme.
