Warren Buffett is betting big on railroads. He started buying Burlington Northern Santa Fe in 2006 and then made investments in Union Pacific and Norfolk Southern. On Tuesday, his company, Berkshire Hathaway, announced the purchase of the 77 percent of Burlington Northern it didn’t already own for about $44 billion (along with the assumption of $10 billion in debt). It is Berkshire’s largest acquisition.
It has been a long time since railroads were central to America’s booms, bubbles and busts. What does Mr. Buffett’s investment in trains say about prospects for the economy? How can his role be put in historical perspective?
Nice discussion ensues.