Buffett buying Burlington rail in his biggest deal

Posted by & filed under Part 1 Business in a Global Environment, Part 3 Management: Empowering People to Achieve Business Objectives, Part 6 Managing Financial Resources.

Description: Warren Buffett’s Berkshire Hathaway Inc will pay $26 billion to buy out Burlington Northern Santa Fe Corp in a bet the nation’s largest rail company will benefit from a recovering U.S. economy.

Source: Reuters.com

Date: 11/03/2009

Link: http://www.reuters.com/article/topNews/idUSTRE5A22A720091103

Questions for discussion:

  • Do you think this investment will turn out to be a good one for Buffett? Explain your answer.
  • What are the risks to owning and operating a railroad?

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