Warren Buffett $34-billion railway deal

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,

Buffett Deal Won t Be the Last Mega-Merger, Says Diane Garnick

Buffett s Deal Won't Be the Last Mega-Merger, Says Diane Garnick

Warren Buffet is digging deep into his pockets, making a $44 billion bet on the U.S. economy. Buffett's Berkshire Hathaway announcing plans today to buy the remaining stake in railroad giant Burlington Northern Santa Fe it doesn't already own for $100 a share in cash and stock, and assume $10 billion of debt.

Apparently, the Oracle of Omaha is fired up about the acquisition – the largest in company history. "It's an all-in wager on the economic future of the United States. I love these bets," he says.
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Warren Buffett Wall Street Needs Carrots and Sticks

Warren Buffett doesn't look at Wall Street as "evil," but he does believe both "carrot" and "stick" incentives are needed to make sure people "behave well" while they are trying to get rich.
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Better own Equities than Treasuries Warren Buffett

Warren Buffett, chairman of Berkshire Hathaway: " I have no idea what the stock market's going to do tomorrow, or next week, or next month or next year. But over a 10-year period you will do considerably better owning a group of equities than you will owning Treasuries. In fighting the economic war, we've taken action that sows the seeds of substantial inflation down the road. Not in the next six months or year, but 10 years from now the dollar will buy a lot less than it buys today."
Source : The Washington Post