Berkshire buying Burlington Northern railroad

Choo-choo!! I think he can! I think he can!

I'd bet against Buffet at this point. In fact, I think I'll short Berkshire today. Why? Firstly, the U.S. stock market is about finished with the bounce up from it's March bottom. All boats will sink. Secondly, Buffets picks have deteriorated and his performance has deteriorated along with it. He sold BILLIONS of put options prior to the market crash and had his hat handed to him. He also was cheerleading the market like hell just before the crash to keep himself from taking a bath on the sale of the puts. Warren ain't what he used to be.

I too would bet against Buffet on this one and maybe to my detriment but I just have little faith in the economy right now. I know it will eventually bounce back but I think we aren't finished quite yet.

This is so exciting!

I think I'll go buy that new car!

I guess we peons are supposed to gather that we can all breathe a sigh of relief because "Daddy WarrenBucks" is betting on a frickin railroad?

He is so yesterday.........

I'd still prefer his situation to mine.

Nice to see so many of you know so much more about investments and the economy than Buffet. How how many billion did you guys make this year?

I am betting against buffet. I will vote no. This company is worth more, like 150 dollars. What he will do is split up the company. Talk about job cuts.

That is one heck of a headline, "Buffett Makes Bet on Economy". I assumed he was betting, such as in gambling, re: real growth in the economy. He is a buddy of Obama..

It was a catch headline for readers to open the article.

It's about buying Burlington Northern Railroad. All Buffett is doing is investing in businesses that are in dire trouble, for future investments, like the stock market. So?

That headline a false statement.

Maybe he'll help get some trucks off the road. We should be carrying much more freight on rails. People too, for that matter

newton-918654,

LOL, Let me know how that shorting thing goes. You did read about the stock being worth over 3k a share for B. Over 100k for A. Nice to know who has the money to gamble. Why not try Vegas?

Joey Boy, this guy is an incredible visionary with Big Bucks..I believe, you said a mouthful of truth of the futures commerce vision..this guy is a smooth operator, money makes money, what can I say..I believe, Shadow Kings rule this Country and the World, some are Kool, some not..I thank God, for people that care/ invest enough for the continued human existence struggle......

With all that money, it's a real shame he didn't invest in the people and opened businesses and kept the economy. Just goes to show that he is stinking rich and just wants MORE, MORE, MORE.

How much money does one really need to be satisfied is a question that needs to be asked.

People are just greedy for no other reason that to look down on the real workers of America, the poor that makes them rich. Hopefully the day will come when people decide to go to these people's homes and take back what it rightfully theirs. Buffet did not earn that money he plays with. He is a thief and a crook that took advantage of the working poor like a hawk flying above its next victim.

Peregrin,

Just shorted Birkshire. Don't wait to hear from me. Watch it yourself and I'll take a side bet from you if you want. I'll be covering sometime in the next two months me thinks...BTW, I don't have Warren's billions but I'm 35 years younger and outperformed him by about 200 percent last year.

Hopefully the day will come when people decide to go to these people's homes and take back what it rightfully theirs.Buffet did not earn that money he plays with.

How do you figure that?

Rightfully theirs?

You must be one of those "redistribution of wealth" guys.

I don't recall doing anything for Buffet or any of his businesses myself but, if you say I deserve it I won't poo-poo a million or two!

What do ya say Tycironi? You want to go get what's ours?

You would have to be a complete idiot to want to take up that bet. I don't know if you remember the old E.F. Hutton commercials, that use to be in this fore-mat: "When E.F. Hutton speaks, people Listen". Well, no truer words can be spoken of Warren Buffet. As far as the individual whom made the stupid Cho-Cho comment. I would like to point out a little tid bit for you of the importance of the Railroad industry in the United States. If all the nations Railroads shut down all at once throughout the United States of America so much for six months, that would ruin the United States economy for ten years following. I would also like to point out while our so-called leadership in Washington D.C. has been neglecting to fix our roadways, bridges and other infrastructure, the Private Sector Railroads have spent so far to date multi billions of dollars of their own earned income jointly on infrastructure improvements across this nation on their own rights of way, especiallly picking up the lions share of the cost of improving the railroad infrastructure in around the city of Chicago in what is called the CREATE project. I would also like to point out the fact that while our highways are getting more and more congested, the quality of service on our nations airways and flight paths is getting worse, there is only one alternative to turn to and that is our nations Railroad network. The private sector Railroads got sick and tired of having to deal with the foot dragging government in Washington D.C., and so decided to tackle the various issues on their own accord rather than having to deal with the idiots whom have done little to nothing since the 1970's as far as supporting efforts to service improvements nationwide. So, if you think the nations Railroads are some kind of cute little toy for your amusement, think again. And get back into the realm of reality. We are talking about a multi-billion dollar a year business sector. Not a business sector to laugh at or turn you back on at either. "When Warren Buffet speaks, I sure as hell will Listen".

He made a brilliant move if cap and trade passes. Railroads will be the transportation of choice and provide low cost shipping with minimal carbon release to pay for.

Buffet's bet is a long-term bet, and based on this administrations drive to create some kind of "green economy" to replace our exported economy it is a good one, assuming the whole country doesn't collapse, and if it does collapse what difference does it make at that point if he loses a few billion.

As more and more pushes to make vehicles green take place the cost of shipping goods and for traveling are going to go higher and higher therby driving more goods and people to railroads. It is not a bet on the strength of the economy but rather what the economy is going to become.

I recall a similar headline in the spring when "green shoots" was the hot propoganda keyword and Buffet made some big purchase then as well. It's as if the administration is funding or encouraging him to make these purchases and the "feel good" statements that go along with them.

pjam09,

If Buffet's rail road buy today is a long term thumbs for the American stock market, what does it mean that he's also dumping his stock in Moodys faster than a bowling ball drops from the sky?

"Just shorted Birkshire."

Funny, you are shorting company and you can't even spell the name correctly. What do you expect for a stock pick based more on partisan politics than sound investment strategy?

Well Don you goddamned genius you got me on the spelling error! But news flash! Spelling isn't the same as shorting. If you want to take an even money side bet that shorting BERKSHIRE (happy Donny?) is a money maker over the next six month...let's talk please. I'll just look at you as a put option without the premium. One hell of a good bet. BTW you scary teacher of spelling, you wrote: "Funny, you are shorting company". I assume you mean "Funny, you are shorting A company" don't you dummy?

No because I don't view my investing like trivial sports bets.

Funny how many investment gurus are here during there day jobs, or out of work and Buffett has been making money for his investors for decades. I wonder whose advice is based more on sound fundamentals??!!!

Take my word for it, you'd do better betting on sports. Leave the shorting to the people who know how to think.

I am with Buffet, bet on China. Buffets right, the only thing that can't be exported for manufacturing to China is the transportion of manufactured goods from China. Thats what Buffet thinks of Americans, fat and lazy, he says it over and over he only invest in companies who service or product, for production or development, cant be exported. Notice how he owns no companys that has anything to do with US auto makers etc. A true Obama man, hates America, Bunch a fat lazy white devils.

pjam09,

The green economy is being created and is going to continue being created regardless of any administration. A greener environment is what people want.

pjam09,

You really drank the Kool-Aid bud. Step back and ponder things more deeply for a minute. Now, do you think China and India and Brazil give a fart about the green economy? LOL. Everything we 'conserve', they will buy cheaper and burn to fuel their growth while we drive tinker toys and go broke.

Warren claims he drinks eight cans of Cherry Coke on a daily basis! Only because he owns most of Coca Cola! With a buzz working like that all the time, you'll never know what he'll buy next!

Newton, you are absolutely correct. Our "green economy" will be nothing but a "feel good" economy for ourselves, I think we all know that. I was not endorsing it. I was simply stating that lots and lots of taxpayer money will be funneled into railways and the cost of using automobiles will increase forcing citizens/businesses to utilize rails more and more. We are already seeing it with the stimulus funding of the high-speed rail from L.A. to vegas.

Yes, the economy will be a joke, but that is not what Buffett is realy betting on, he is betting on government funding and increasing tranportation costs that will result from the green agenda.

P.S.

India and China are betting against Buffet, amongst others.

http://articles.moneycentral.msn.com/Investing/top-stocks/blog.aspx?post=1351070&_blg=1,1351070

It tells you something big is going to happen with burlington. Not now, not in a few weeks but months down the road. I remember when the stocks crashed, and he made headlines on buying lots of stocks in Goldman Sachs. Everyone thought he was crazy. Saw a small article by newswine that wrote that Goldman sachs is positioned perfectly to make a killing from the failed banks. Whatayou know...... few months down the road, they are making a killing.

Of course Wallstreet don't care, all they want to do is make quick bucks and not think longterm

I also fing it amazing that I forget to proof-read what I post when I know that I can't type :)

"invetstor" ?

At least you caught yourself! LOL!

I wouldn't mind being able to be an invetstor like he is!

That's the German pronunciation.

Danwill:

We'll give you a break. I make them all the time. I can't find spell check on here anymore.

Danwill:

At least your honest in making your mistakes. That's a far cry from the so-called leaders in our nations Capitol, or should I say our nations Halls of Shame. Those that try to bury, hide or pass the buck onto others when making mistakes.

Buffett is paying cash and stock. He doesn't borrow to do do deals . He doesn't need to!

sharky - actually I believe Buffett is borrowing money as part of this deal, somewhere around $8 Billion.

you're right he arranged an 8 billion dollar bridge loan. he is using the funds to fund the 13.6 billion cash portion of the transaction.

Peter:

Is Buffett borrowing money (34B) from the Government? Obama?

The US Treasury seems to be full of extra money.

Unlike, AIG, Sh-ti Bank, and others. Buffet will pay back on a timely basis and won't ask for more. Take a look at the price of Warren Buffets holdings that are open investments on the various stock exchanges. They are far more profitable than anything else with a cuspid name on the Dow, the Nasdaq, the Spider. Not hard to recoginze whom is managing those porfolios. Sure as hell isn't Bernie Madoff thats for certain.

Inga

Are you sure it isn't "Thomas the Trains" railroad company?

My first thought wasn't a little boy owning a railroad...it was "Monopoly".

LU:

Fake "paper" money?

Pine Apple boy. How is the the stock on Dole Foods doing these days? The only real railroad I know of is a former sugar cane line on the Island of Maui called the Lahina Kanapale & Pacific and that is a tourist line that doesn't add to a hell of a lot of beans, when compared to mainland railroads in action. I'm on the mainland and work directly with the Railroad industry on the mainland. Pine Apple boy, if it wasn't for a railroad on the mainland you wouldn't have your car, that roof over your head or the walls that support them nor 90% of the food in Hawaii now. Besides, the surfs up and the sugar cane needs to be harvested. Stick to the issues that effect your side of the pond, and we'll stick to the ones that effect ours. Besides wasn't Obamalama, the king of the flip flop artists born in your state?

They say 10 years till the oil will be half gone, production will start to decline and price will rocket....This is a very smart bet on energy not economy......Get it while you can Warren......First, electric cars now a railroad.....Genius .....What next? Railroad hubs? Semi-Tractor trailers that run on Natural gas?

Zeke: You could be right. Seems Trains are has beens. Waterway Freight Containers will be the course?

Buffett found a good "deal".

They say 10 years till the oil will be half gone, production will start to decline and price will rocket....This is a very smart bet on energy not economy

What do you think trains run on?

zeke, you are right.

sg,

Railroad tracks?

Trains are diesel electric and many just electric. The railroad industry isn't going away anytime soon, it is the main arteries of this country, without it our country would come to a stand still.

I look at this purchase as Mr. Buffett betting that gasoline and diesel prices will increase sharply, making freight shipment by rail more appealing. It is not so much a bet on the economy as a bet on the long-term direction of energy prices.

That said, there may be a small bet in the resurgence of American manufacturing as heavy industries need rail service.

The Railroad industry, unlike the Government is creative, intelligent and willing to spend money on finding new idea's and innovations as far as improving and upgrading infrastructure and motive power. Back during the last gas crunch during the mid 1970's the Railroad industry came up with and approved of an idea to create and build an alternative fuel operated locomotive called the ACE3000, which might I add, the consept and the idea was turned down and refused to operate on our nations rail network, by guess who, your tax dollar wasting, idiotic Central Government in Washington DC. This locomotive would have operated on the cleanest coal source currently in the United States, the Powder River Basin in Wyoming re-using the exhaust as a form of re-heating or would have been even operated using the poorest grades of oil after the refining process, and would have burned 95% cleaner than the old steam powered locomotives that the early diesels took over service from in the 1950's and early 1960's. This engine would have been a revolutionary type of steam turbine unit that would have had ten times the pulling power and tractive effort than today's locomotives. The statistics on this unit can be found on www.trianweb.org/tusp/ace.html . Please read all the articles in this web page to gain further knowledege on this unit that Washington D.C. doesn't want you to know about.

The railroads are a good invest in the economy as were are trying to decrease truck traffic on the long-haul interstates and putting them on an efficient and faster rail system.

The railroads are also looking into electrifying there key routes in the future as high speed rail becomes more extensive.

he is making a good bet. US exports are skyrocketing because of the weaker dollar and trains will carry the exports to the west coast.

Don: i think you have the wrong idea what day traders are. Day traders want volatility, regardless which direction the market goes (taking long or short positions on intraday basis). Economic data boosts intraday volumes and volatility, and consequently those are the positively exciting days for daytraders. It's the mid-term traders that have their knees knocking (mutual funds managers and such). Buffett is a long-term trader. Even if the market takes another dip, he'll make profit in the long term.

He's 79 now; if he had political aspirations he would have started before now.

But he does have the ear of the President, and lucky for us Obama is smart enough get advise from people like Buffett.

He has his ear, that doesn't mean he is listening, Buffett would not make a mistake like bailing out a bank, or a failing motor company. His investment decisions yield high returns, typically about 10%. Spent most of my mba and graduate degree studying his methods, much different then any administration we have ever had!

You're about 7 years too late with this strategic theory...and Cheney already beat you to it...

Not only is Buffett a good businessman, but he's a frugal person. Instead of blowing money on his "life style" he lives in a fairly modest home and doesn't buy crap that he has no use for.

Every day American could take some lessons from Buffett.

And tell me what will they use to produce that electricity?

Thats right... coal.

afloatinasea, your point is?

we're talking about trains, not coal. trains don't run on coal anymore, and also represent the cheapest and most fuel efficient way to ship large volumes of goods over land for long disatnces.

Actually the government "asked" Goldman to take a TARP loan that was repaid, plus around 17% interest, as soon as they were permitted to. That could hardly be classified as a "subsidy".

If we keep looking, I'm sure that we will find some sort of conspiracy, evil doings, a plot to ruin us all, etc., etc. There may even be a boogie man involved in this?

Buffett said he likes to "bet on brains" and called Goldman the best firm on Wall Street.

But he also made it very clear that he would not have bought anything right now if he wasn't confident Congress will do the "right thing" and approve the financial bailout proposal put forward by Treasury Secretary Henry Paulson.

The above is a quote from CNBC from Sept. 2008. The former CEO of Goldman Sachs, Hank Paulson, Treasury Sec at the time along with helicopter Ben saw fit to make sure that Goldmans did not go under. Buffet had already made his investment committment prior to the bailout and Goldmans was still tanking. Just sayin, go figure.

Please, this has nothing at all to do with Obama, a raging anti-business, socialist leaning bureaucrat. All business leaders suck up to him, as they do all Presidents, then go back and run their businesses, forget whatever they told the Pres., and try to make as much profit as they can for shareholders - just what they should be doing.

This has everything to do with Obama! because his policies will bring the american economy back! and buffet is investing in that!

there's a clown in the White House.

He probably is a clown and buffet is investing in that!

The circus clowns are good in putting smiles on people's faces!

I rather be a clown than a 'SORE LOSER'!

2BadpPole,

What's the flavor of the koolaid you've been drinking?

Obama is an attorney who never ran a business and knows nothing about economics, as he continues to prove on a daily basis.

All economies operate in cycles. Every 6-10 years we have a recession that lasts from 2-4 quarters and then the economy recovers whomever happens to be in the White House or which party controls Congress.

The real question is what will life look like for our children and grandchildren, and with the debt load Obama is adding to future generations things do not look good. We will have low growth, stagnant wages, higher taxes and high inflation. Our children and grandchildren will have a lower standard of living thanks to Obama, Pelosi and Reed.

Buffet has billions and Obama is president! Whatever you say means nothing! Look at the facts! we're here communicating with each other and they are runnig a business and a country! They must be pretty smart!

Numnuts!

Maybe we should bring Bush and Cheney back and let them finish the demo work they started,,,,if only they had a little more time .

This isn't a company that was in trouble financially.

fight:

Show the forum some facts and figures and back up your assumptions as to why, how and where. Please enlighten us, and don't forget to provide some proof and accuracy to your mathematical data and information source or sources. Please enlighten us.

No, it is not logical. It can take months, even years, before such an acquisition is approved by the shareholders, especially in cases of hostile bids. However the bid must be announced, so investors can decide whether it's in their benefit to buy/keep/sell the stock. Market transparency.