Buffett buys new train set

[unclemick]

Quote:

Originally Posted by brewer12345 I think that in addition to a play on economic recovery, this is a bet on higher energy prices in the future. Rail let's you move a ton of freight 20 to 40 times the distance trucks can on a given amount of diesel. And I bet the utility holdings gave them extra insight into BNI's business. Seems like a good bet, but a big one. I suspect Berkshire will not be writing much cat reinsurance for a while after doing this. Fine by me, given that I own pieces of other cat reinsurers.

I notice CSX is running tv ads making the same point?

My suspoius mind immediately wondered why as my hand went to check that my wallet was still there.

heh heh heh - running ads on cable tv is a way to efficiently reach shippers?? .

[Nords]

Quote:

Originally Posted by clifp Nice investment Gumby. In the past some of Buffett's purchase have cause shareholders to protest the price was too low. On the perfectly logical basis that Buffett never overpays ergo we shareholders are getting taken. If you are any example I suspect most BNI shareholder will be happy to take the profits either in cash or Berkshire stock. I have mixed feelings. It doesn't strike me a real bargain, on the other hand even though I know it is foolish to believe that anybody can beat the market , the guy in Omaha has pretty good track record so I am inclined to believe that this isn't a stupid purchase.

Rumor is that the BNI board wasn't happy with the $100/share offer but Buffett said that's all he could afford. They eventually agreed to the tax-free aspects of swapping their shares for BRK "C" shares. And maybe some free See's Candies.
Buffett cuts BNSF deal at Fort Worth's Ashton Hotel | Fort Worth | Star-Telegram.com
'Courtesy Call' Turns Into a Quick Agreement - WSJ.com

Another financial firm is speculating that this will speed Berkshire's entry into the S&P500 to the extent that they're telling their customers to start buying March call options.
Berkshire Hathaway in the S&P 500? - Striking Price Daily - S. Sears - Barrons.com

Um, I'll let someone else jump into that one first...

[clifp]

On the Berkshire Motley Fool board, I think more people are excited about seeing Berkshire added to the S&P 500 than the purchase of BNI.

[Nords]

Quote:

Originally Posted by clifp On the Berkshire Motley Fool board, I think more people are excited about seeing Berkshire added to the S&P 500 than the purchase of BNI.

I'm looking forward to it. As the demand drives up Berkshire's price I'll just keep converting "B"s into "C"s and writing OTM covered calls rebalancing into it...

Looks like Buffett has also been doing a little end-of-year planning involving low-income-housing tax credits, too:
http://seekingalpha.com/article/1717...ed-a-month-ago