Buffet Goes Long The US Economy

In today’s news three major companies reported future job cuts. Nokia (NOK) will cut 5,700 Johnson and Johnson (JNJ) 8,000 and HSBC (HBC) 1,700. Despite these reports the headliner for today is that the worlds greatest investor has just purchased the railroad company Burlington Northern (BNI) outright. The deal will pay a heft premium of $100 a share. This is over 30% above the shares recent trading price of $65. The significance of this purchase is that Buffet has placed his legacy and Berkshire Hathaway’s (BRK) future on this railroad. This is his largest acquisition of all time. Maybe he just wants to be like John Rockefeller, but he stated that this purchase was a bet for America’s future. This shows Buffet must believe in an economic recovery, but note he doesn’t place any timetables.






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