Tuesday, September 04, 2007

Buffett making large, growing bet on railroads

For those as obsessed with Warren Buffett as I am, here's his latest move.

He's already amassed $4 billion worth of BNI, Burlington Northern Santa Fe railroad, based out of Dallas/Fort Worth, and now he's talking about raising that stake much more. It could even become a bigger position for him than Coca-Cola, Wells Fargo, and Proctor & Gamble, which have long been huge bets for him.

Considering how conservative he is and the size of this bet, clearly he has a very high degree of confidence in it. Copying his bets has long been a reliable way to beat the market, so don't be surprised if this turns out to be a smart move.

The man is a genius, and an amazing human being. Note that while the market is in turmoil and stocks are down the last month, Berkshire Hathaway, which I have more than half of my portfolio in, is up well over 10%.

Keep it up Warren. I hope you live to 100. And write books.

finance sites always have disclosures but I never know if you are supposed to. So I own brk.b but not BNI. Do you own research, nobody really knows what they're talking about and that's why the S&P 500 index funds beat most mutual funds.

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