Warren Buffett is selling puts on Burlington Northern Santa Fe (BNI, Financial), a filing of Berkshire Hathaway revealed today.
As of Oct. 6, Warren Buffett sold 1,309,524 shares of put options on Burlington Northern Santa Fe (BNI) at $7.02 an option, exercisable before 12/08/2008, with a strike price of $80 a share.
As BNI stock prices declines to where Warren Buffett bought them last year, it seems that Warren Buffett is trying to buy more Burlington Northern. Buffett started to buy Burlington Northern in 2007, he continued to add to his position until the first quarter of 2008. The share of BNI were traded at $110 a share in June. It declined to around $80 lately with the general market.
Buffett owns more than 67 million shares as of June 30, 2008, that is more than 18% of the company. His average purchase price is about $80 a share. You can see his purchase history of BNI Here.
In 2008, Warren Buffett’s largest purchase is Kraft Foods (KFT, Financial). He mentioned that he bought more Wells Fargo in one of his interviews. The details are not known yet.
It is interesting that Warren Buffett uses option contracts to buy the stocks he wants, although he said he opposes the use of derivatives.
As of Oct. 6, Warren Buffett sold 1,309,524 shares of put options on Burlington Northern Santa Fe (BNI) at $7.02 an option, exercisable before 12/08/2008, with a strike price of $80 a share.
As BNI stock prices declines to where Warren Buffett bought them last year, it seems that Warren Buffett is trying to buy more Burlington Northern. Buffett started to buy Burlington Northern in 2007, he continued to add to his position until the first quarter of 2008. The share of BNI were traded at $110 a share in June. It declined to around $80 lately with the general market.
Buffett owns more than 67 million shares as of June 30, 2008, that is more than 18% of the company. His average purchase price is about $80 a share. You can see his purchase history of BNI Here.
In 2008, Warren Buffett’s largest purchase is Kraft Foods (KFT, Financial). He mentioned that he bought more Wells Fargo in one of his interviews. The details are not known yet.
It is interesting that Warren Buffett uses option contracts to buy the stocks he wants, although he said he opposes the use of derivatives.
