We have reported that Warren Buffett continues to sell put options on Burlington Northern Santa Fe. Berkshire Hathaway just reported that Warren Buffett also bought more Burlington Northern shares.
On Oct. 28, Warren Buffet bought 825,000 shares of Burlington Northern at $79.65 a share. This brings Berkshire’s ownership in Burlington Northern to more than 64.6 million shares, more than 18.7% of the total shares outstanding. Today Burlington Northern closed $89.06.
We know that Buffett does not time his buys with the stocks he likes, as long as he thinks the prices are fair. But this purchase of BNI was at almost the very bottom in BNI’s recent tradings.
We have had a series of reports on Warren Buffett about his put selling of Burlington Northern. The strike prices were all at or below $80. If Burlington Northern continues to trade above $80, Buffett will keep the put premium for free.
Warren Buffett is becoming more active these days as stock market has plunged to its lowest level in about 10 years. Why is he buying stocks now? “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors,” he wrote in a New York Times article published today. Buffett also said he believe over the next decade, stocks can outperform cash by a substantial degree.
GuruFocus did a study based on Warren Buffett’s evaluation method, and found that stock may return at least 8-10% over the next decade. The article was published on Oct. 21, when Dow was at 9,045. Today it finished at 9,325. To read the article, go to Where Are We with Market Valuations? What Can We Expect for the Next Decade?
On Oct. 28, Warren Buffet bought 825,000 shares of Burlington Northern at $79.65 a share. This brings Berkshire’s ownership in Burlington Northern to more than 64.6 million shares, more than 18.7% of the total shares outstanding. Today Burlington Northern closed $89.06.
We know that Buffett does not time his buys with the stocks he likes, as long as he thinks the prices are fair. But this purchase of BNI was at almost the very bottom in BNI’s recent tradings.
We have had a series of reports on Warren Buffett about his put selling of Burlington Northern. The strike prices were all at or below $80. If Burlington Northern continues to trade above $80, Buffett will keep the put premium for free.
Warren Buffett is becoming more active these days as stock market has plunged to its lowest level in about 10 years. Why is he buying stocks now? “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors,” he wrote in a New York Times article published today. Buffett also said he believe over the next decade, stocks can outperform cash by a substantial degree.
GuruFocus did a study based on Warren Buffett’s evaluation method, and found that stock may return at least 8-10% over the next decade. The article was published on Oct. 21, when Dow was at 9,045. Today it finished at 9,325. To read the article, go to Where Are We with Market Valuations? What Can We Expect for the Next Decade?
