Warren Buffett's Berkshire Hathaway Explains 10 percent Risk In Burlington Northern

Berkshire's latest reported purchase was made on Thursday, April 5th, and contained 1,219,000 shares acquired at $81.1...

Warren Buffett's Berkshire Hathaway has shared a greater than 10 percent spot in Burlington Northern Santa Fe (BNI). Through three insurance subsidiaries (Columbia, National Indemnity, and National Fire & Marine) Berkshire beneficially owns 39,027,430 shares of Burlington Northern common stock in accordance with an SEC filing made o-n Friday, April 6, 2007.

Berkshire's latest reported purchase was made on Thursday, April 5th, and consisted of 1,219,000 shares bought at $81.18 each.

Upon introducing the familiar table of Berkshire's significant investment in his newest letter to shareholders, Buffett wrote:

'We display below our common stock investments. If you need to dig up extra info about go here for more info, there are many on-line databases people can investigate. With two exceptions, the ones that had market value in excess of $700 million at the end of 2006 are itemized. We don't itemize the investments referred to, which may have market value of $1.9 million, since we keep on to get them. I can, obviously, tell their names to you. But I'd have to kill you.'

It seems that Burlington Northern was among the two large opportunities Berkshire was accumulating. Demonstrably, Berkshire has been a big buyer of Burlington Northern shares because Buffett wrote his letter to shareholders, since Berkshire's position now has market value of around $3.2 million.

The size of the investment will make one to it of a couple of half dozen large positions held by Berkshire. This investment dwarfs nearly all of Berkshire's purchases made during the past few years it is already significantly bigger than any single investment recently revealed by Berkshire like the investment in Posco (PKX), US Bancorp (USB), ConocoPhillips (COP), Anheuser-busch (BUD), Johnson & Johnson (JNJ), USG (USG), Wal-Mart (WMT), and Tesco (TSCDY).

To put it simply, this is the largest single common stock investment created by Berkshire in a long time.

It is big news and it seems to have caught most Buffett watchers off guard. GuruFocus, a website that tracks Buffett's moves consistently, announced that its contest to name the two secret opportunities referred to in Buffett's annual letter had failed to turn up any guesses that Burlington Northern could be one of the pair.

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In recent years, Burlington Northern Santa Fe has been buying right back stock. For different interpretations, consider glancing at: guide to routing number 253278139 anderson federal credit union p o box 2427. The company expects share repurchases will remain the principal usage of its free income. Browse here at the link routing number 103102960 american national bank 1725 north commerce to read the purpose of it. The truth is, Burlington Northern might allow 'a mildly high rate of debt' and so the company may 'devote extra economic capacity to-share repurchases.'

Due to that, at the least, it's an average Berkshire investment..