Warren Buffett's Berkshire Hathaway buying Burlington Northern
Billionaire investor Warren Buffett's $34-billion acquisition of railroad giant Burlington Northern Santa Fe Corp. is the biggest bet yet on a U.S. economic recovery, Warren Buffett’s Berkshire Hathaway Inc. on Tuesday agreed to buy Burlington Northern Santa Fe Corp., making a $34 billion bet on the future of the U.S. economy.Burlington Northern is America’s second-largest railroad, the biggest hauler of food products like corn and coal for electricity, making it an indicator of the country’s economic health. The railroad also ships a large amount of goods from Western ports including consumers products imported from Asia and China in particular.
To accommodate railway deal, Berkshire plans to split ‘Baby B' shares 50-to-one; shares will be worth around $65 (U.S.) apiece
rail stocks will get a short-lived boost from Warren Buffett's Burlington Northern Santa Fe purchase,
