Power Breakfast: Buffett, Delta, Kia, securities fraud, auto sales
Perhaps the most famous investor in the world, Warren Buffett, is making the biggest bet of his career on the long-term health of the U.S. economy.
Buffett’s Berkshire Hathaway on Tuesday agreed to buy the 131-year-old Burlington Northern Santa Fe railroad for $26 billion.
A railroad might strike many people as a bit old-fashioned — more 19th century than 21st, the New York Times writes. But Buffett is wagering that as the economy revives, so will the demand for goods to be shipped by train.
Burlington Northern carries coal and timber from the West, grain from the Midwest and imports arriving directly from Mexico and Canada, as well as through California ports, the Times reports.
Buffett is also betting that higher oil prices down the road will work against the trucking industry and for railroads like his.
In the AJC:
- Vacant restaurant spaces find new life
- Union seeks election delay, angering Delta
- Economist: Gift giving is a waste or resources
- Two Georgia men indicted for securities fraud
- Kia to hire more workers for West Point plant
In other media:
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8 comments Add your comment
ATLshirt.com
November 4th, 2009
9:04 am
Buffet knows more than us.. and whatever Buffet is betting on, so am I!!
Call it like it is.
November 4th, 2009
9:31 am
This is very typical Buffet, Buy a company when its hurting then turn it around and make it a success. Who ever heard of Geico 10 years ago? He bought them threw in the money and now you can’t go 2 minutes without seeing their name on a billboard or on TV. Now they are the number 3 insurance company in the nation. He is scary smart.
Pompano
November 4th, 2009
9:55 am
Why it it that this piece of crap newspaper never passes on an opportunity to race bait here in Atlanta? Nice headline today on “Racial bias in suspensions” but no facts in the article to substantiate. Just an opportunity to give some people who want to holler discrimination their 15 minutes of fame – what a pathetic organization.
ATLshirt.com
November 4th, 2009
10:04 am
Pompano,
the media loves to stir the racial pot, it gives them something to write about.. plus, they know if they get enough black folks angry enough, they will go out and riot giving the media something more to write about.. they love to create hate..
clyde
November 4th, 2009
10:56 am
It’s hard to argue with Warren Buffet.We all know the price of oil is going up.We just don’t have the imagination to realize how far it’s going up.Warren Buffet knows.
Bacchus
November 4th, 2009
11:24 am
When the fuel economy of shipping a ton of goods by rail is more than 400 MPG, you know railroads are going to be a huge play when inflation hits and we’re back to paying $4 a gallon for gasoline.
Roy
November 6th, 2009
9:24 am
Warren Buffet’s probably on to something. America suposedly is going to move back to using trains (ultimately electric like in Europe), for cargo and transportation. They’ll be more economical than a diesel rig, cleaner too. Plus, God knows what the hell’s gonna happen to oil prices in the future except go up.
Rockon
January 14th, 2010
6:49 am
It’s hard to argue with Warren Buffet.We all know the price of oil is going up.We just don’t have the imagination to realize how far it’s going up.Warren Buffet knows.
http://investmentloss.net/