Buffett's placed a big bet. (Nati Harnik/AP)
By Mark Memmott
We're not talking Monopoly money here folks.
Berkshire Hathaway Inc., the legendary business led by legendary investor Warren Buffett, announced this morning that it is spending $34 billion to buy the 78% of Burlington Northern Santa Fe Corp. that it doesn't already own.
In announcing the purchase, Buffet said that:
"Our country's future prosperity depends on its having an efficient and well-maintained rail system. Conversely, America must grow and prosper for railroads to do well. Berkshire's $34 billion investment in BNSF is a huge bet on that company, CEO Matt Rose and his team, and the railroad industry. Most important of all, however, it's an all-in wager on the economic future of the United States. I love these bets."
The Associated Press writes that:
Berkshire also owns MidAmerican Energy Holdings, which controls power companies in the Midwest and Pacific Northwest. The railroad could be a strategic acquisition because its tracks run right through both regions, a major coal supply route for power plants.
Update at 10:30 a.m. ET. As NPR's Daniel Zwerdling reports, Buffett loves to invest in companies that do basic things:
categories: Business
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