Warren Buffett s Berkshire Hathaway Discloses 10 Stake In Burlington Northern
Below is a MRR and PLR article in category Finance -> subcategory Wealth Building.
Berkshire Hathaway Reveals Major Investment in Burlington Northern
Summary:
Warren Buffett's Berkshire Hathaway has announced a significant investment, owning over 10% of Burlington Northern Santa Fe (BNI). As disclosed in an SEC filing on April 6, 2007, Berkshire, through its insurance subsidiaries Columbia, National Indemnity, and National Fire & Marine, holds 39,027,430 shares of Burlington Northern stock.
Article:
Berkshire Hathaway, led by Warren Buffett, has made headlines with its recent disclosure of a substantial investment in Burlington Northern Santa Fe (BNI). According to an SEC filing on April 6, 2007, the conglomerate holds more than 10% of Burlington Northern's common stock, amounting to 39,027,430 shares. This ownership is through Berkshire's three insurance subsidiaries: Columbia, National Indemnity, and National Fire & Marine.
The latest addition to this stake was made on April 5th, with Berkshire purchasing 1,219,000 shares at $81.18 each.
In his recent letter to shareholders, Buffett hinted at two large, undisclosed investments, saying:
"We show below our common stock investments. Only those with a market value exceeding $700 million at the end of 2006 are detailed. We don't disclose securities worth $1.9 billion because we're still buying them. I could, of course, tell you their names, but then I’d have to kill you."
It now appears Burlington Northern was one of these significant investments. Since Buffett's letter, Berkshire has amassed a position with an estimated market value of $3.2 billion.
This acquisition ranks among Berkshire's largest holdings and surpasses notable past investments, including stakes in Posco (PKX), US Bancorp (USB), ConocoPhillips (COP), Anheuser Busch (BUD), Johnson & Johnson (JNJ), USG (USG), Wal-Mart (WMT), and Tesco (TSCDY). It is, in fact, Berkshire's largest single common stock investment in recent years.
The move surprised many Buffett enthusiasts, including GuruFocus?"a website dedicated to tracking Buffett's investments?"which had not anticipated Burlington Northern as one of the mystery stocks mentioned in his letter.
Burlington Northern Santa Fe operates one of North America’s largest rail systems, comprising 32,000 route miles, of which 23,000 are owned. The company has been proactive in buying back its stock and plans to use more of its cash flow for further repurchases, possibly increasing its allowable debt level to finance these actions.
This strategic approach aligns well with Berkshire's investment philosophy, making Burlington Northern a fitting addition to its portfolio.
You can find the original non-AI version of this article here: Warren Buffett s Berkshire Hathaway Discloses 10 Stake In Burlington Northern.
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