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CanadianValue
CanadianValue
Articles (4612) 

Warren Buffett Explains Why He Purchased Burlington Northern Santa Fe Railroad

April 02, 2013 | About:

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CanadianValue
http://valueinvestorcanada.blogspot.com/

Rating: 3.4/5 (9 votes)

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Kees van Wanrooij
Kees van Wanrooij - 3 years ago
As far as I know did Buffett pay closer to 44 bln for BNSF?
CanadianValue
CanadianValue - 3 years ago
You are correct, $44 billion was the total cost (includes the shares he already owned and the debt assumed). $26 billion was the cost for the equity Buffett didn't already own.

Thanks for spotting the error.
traderatwork
Traderatwork - 3 years ago
You can learn a lot on every successful investment that Buffett made. The American Express salad oil scandal, the Sees Candy, National Indemnity, Blue chips stamp, Geico, Coca-Cola, Wells Fargo I & Wells Fargo II, BAC+GS+GE prefered... And now NSF & IBM. Someone should write a book/article to explain the rationality behind every one of them and point out what we learn from that one investment.
aostahel
Aostahel - 3 years ago
It also explains why one is a professor - a smart one though - and the other the world's greatest investor. In my view the BNSF deal nicely illustrates how Buffett and Munger with their wide circle of competence across many industries view long term trends (in this case the shifts in transportation due to the energy challenge ahead of the US) as one form of a company having a sustainable moat.

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