“Buffett is effectively buying Burlington at a trough-earnings valuation,” he said. The business will also generate some cash for Berkshire and add a different business to its already diversified collection of operating subsidiaries, Fuller added. ---- Can we see BNSF profits beinf sipioned off and more defered maintance so that Buffet can buffet up his other buineses? Do we want to see BNSF go from a first class RR to a Guilford or Penn Central? This was done in the 1960s when Allegany Corpration ran the Erie and N&W into the ground. Anyway Buffet has too seek Surface Transporation Board approval before he pulls this off…
Warren Buffet/Berkshire-Hathawy has owned something like 22% of BNSF for some time. I would not consider him to be a ‘corp raider’ type. He buys into companies that he feels good about, and generally lets them continue operating as they have. I suspect the dividends will not change.
Jim
Who exactly is ‘‘he’’/ ‘‘Fuller’’ ? What is the source for that quote ?
Every serious article/ report on this that I’ve read today says exactly the opposite - that Buffett is paying more for BNSF on a current/ next year’s Price / Earnings Ratio basis - about 20 times earnings - than any other railroad’s stock is priced - around 15 times earnings. For example, see the following excerpt from Bloomberg’s current article on this - Berkshire Buys Burlington in Buffett’s Biggest Deal (Update4) - at: http://www.bloomberg.com/apps/news?pid=20601087&sid=a9_280LfonzU&pos=1
All I can say is probably to go out and take some pictures.
Where do you think they will put the gecko?
Next to Chico.
Who is “Warrne Buffet”? What is the BNSF “Railroad”? Profits “beinf sipioned” off, “defered maintance”, “Allegany Corporation”??? How does one “buffet” up a business, except on a cruise ship? Ja rozumie i movie po Polsku, takze. Try it again, in Polish*, prose bardzo.* Darn! Maybe the UFT/NEA has struck again! Psia krew, cholera!!
Did Harvey have any gecko recipes?
Warren Buffet and his Freind Bill Gates are Capitilists. Karl Marx may or may not be right about the solution to capitilism but he was right about what capitlism is and its affects on the worker. I am affraid that we have just witneses the return of the big trusts that we saw in early 20th century. Now Goverment will have a excuse in personfing these trusts in Warren Buffet just like they did with Rockefffer and Jay Gould and Carnegie…Look for regulation to try and bust these trusts up.
Just imagine the ads:
“In 15 minutes, you could save 15 per cent on your shipping costs.”
“BNSF: So easy, a caveman could do it.”
“I’ve got good news - I just saved a bunch of money on my shippping costs by switching to BNSF !”.
I am sorry, but I cannot decipher “personfing.” Can you, please, explain what you mean by this expression, since it is not a word found in the English language? Thank you.
Johnny
Personifing as in Satan Himself or something like that [}:)]