Warren Buffett the upcoming RailRoads Tycoon?

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Aug 28 2007
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In the latest filing with the Securities and Exchange Commission, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A, stock) revealed it has bought additional 10.1 million shares of Burlington Northern Santa Fe Corporation (NYSE: BNI, stock) since 23rd Aug 2007, raising its stake in the nation’s No. 2 railroad to nearly 14.8 percent. The new shares were bought by Berkshire subsidiary National Indemnity Company.

In fact, Berkshire has been buying the stock the whole month of Aug 2007. The transactions are as below:

  • 27th Aug – purchased 3,322,170 shares at $80.00 a share
  • 24th Aug – purchased 2,439,100 shares at $79.97 a share
  • 23th Aug – purchased 4,319,500 shares at $79.96 a share
  • 16th Aug – purchased 900,800 shares at $76.50 a share
  • 15th Aug – purchased 500,700 shares at $78.96 a share
  • 7th Aug – purchased 62,400 shares at $79.78 a share
  • 6th Aug – purchased 424,300 shares at $79.45 a share
  • 3rd Aug – purchased 1,133,000 shares at $80.40 a share

warren buffett purchase BNIBuffett has said in the past that railroads have become an appealing investment because those businesses have a better competitive position today than in past years. Buffett said he was slow to realize that railroads were a good investment because the industry’s past performance had prejudiced him.

Just what is in the mind of the Oracle of Omaha? Could Warren planning to increase his stake further to become the largest shareholder of BNI? Would he hold on to BNI for long-term investment the same way he did to Coca-Cola Company (NYSE: KO, stock)? Could there be a major M&A in the railroads sector with Buffett becoming the new RailRoad Tycoon (remember that piece of computer game)? Well, if you’re a die-hard fan of Warren, you might just want to follow his trail – stocks investing or option trading.

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