Buffett's Berkshire To Buy Burlington Northern
Burlington Northern Santa Fe Corp. is the nation's second-largest railroad. Berkshire Hathaway already owns about 22 percent of Burlington Northern, and will pay $100 a share in cash and stock for the rest of the company. Buffett says the decision shows he is confident in America's economic future.
RENEE MONTAGNE, host:
NPR's business news starts with Warren Buffett's big bet.
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MONTAGNE: Buffett is the country's most famous investor, and now he's making his biggest single investment ever. He's spending more than $26 billion to buy a railroad, the Burlington Northern Santa Fe. Buffett has a habit of investing in old-fashioned businesses and says this one shows his confidence in America's economic future. Compared to trucks, trains have lower fuel cost and are generally considered more environmentally friendly.
STEVE INSKEEP, host:
Burlington Northern is one of the country's largest railroads. Its trains handle vast quantities of imports from China, Canada and Mexico. They also move massive amounts of coal and timber extracted from the western part of this country, and they hold tons of grain grown in the Midwest.
Asked why he was willing to spend so much for a railroad, Buffett said, quote, "This is all happening because my father didn't buy me a train set as a kid." Transcript provided by NPR, Copyright National Public Radio.
