Bored with railroads, Warren found his new toy

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Nov 15 2007
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Months after playing with his trains, world’s second riches man Warren Buffett somehow got bored with the toys. The Oracle of Omaha continues to sell Norfolk Southern Corp. (NYSE: NSC, stock), Union Pacific Corp. (NYSE: UNP, stock). His empire Berkshire Hathaway announced it has only 4.5 million shares of Union Pacific as of Sept. 30, down from the 7.4 million shares held on June 30. Berkshire also trimmed its shares in Norfolk Southern to 1.9 million shares as of Sept. 30 from the 3.8 million it owned as of June 30.

However one of his railroad toys, Burlington Northern Santa Fe Corporation (NYSE: BNI, stock) remains his favorite with his stake at 60.8 million shares, controlling 17.2 percent of the nation’s second-largest railroad. Warren has found a new interest though, his new toy in used-car retailers. According to regulatory filing, Berkshire Hathaway (NYSE: BRK.A, stock) has bought nearly 14 million shares (6.4 percent stake) of Carmax Inc. (NYSE: KMX, stock), the nation’s largest specialty used-car retailer.
Warren Buffett and CarMaxCarmax Inc. is a retailer of used cars that purchases, reconditions and sells used vehicles. Approximately 85% of the used vehicles CarMax retails are 1 to 6 years old with fewer than 60,000 miles. During the fiscal year ended February 28, 2007 (fiscal 2007) it retailed 337,021 used vehicles and operated 77 used car superstores in 36 metropolitan markets. In addition, the Company sold 208,959 wholesale vehicles in fiscal 2007, through its onsite auctions.

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