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jrbernier
Joined on
01-08-2001
Rochester, MN
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Re: Warrne Buffet is Robbing BNSF railroad.
Warren Buffet/Berkshire-Hathawy has owned something like 22% of BNSF for some time. I would not consider him to be a 'corp raider' type. He buys into companies that he feels good about, and generally lets them continue operating as they have. I suspect the dividends will not change.
Jim
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Paul_D_North_Jr
Joined on
10-12-2006
Allentown, PA
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Re: Warrne Buffet is Robbing BNSF railroad.
 PolishPower3: "Buffett is effectively buying Burlington at a trough-earnings valuation," he said. . . . Fuller added. [snip]
Who exactly is ''he''/ ''Fuller'' ? What is the source for that quote ?
Every serious article/ report on this that I've read today says exactly the opposite - that Buffett is paying more for BNSF on a current/ next year's Price / Earnings Ratio basis - about 20 times earnings - than any other railroad's stock is priced - around 15 times earnings. For example, see the following excerpt from Bloomberg's current article on this - Berkshire Buys Burlington in Buffett’s Biggest Deal (Update4) - at: http://www.bloomberg.com/apps/news?pid=20601087&sid=a9_280LfonzU&pos=1
At $100 a share, Buffett is paying 18.2 times Burlington Northern’s estimated 2010 earnings of $5.51, according to the average analyst projection in a Bloomberg survey. That compares with the 13.4 multiple for the Standard & Poor’s 500 Index as of yesterday’s close. . . . [snip] . . . Competing railroad Union Pacific Corp.’s ratio was 13, while Jacksonville, Florida-based CSX Corp.’s was 13.1, Bloomberg data show.
Yes, the economy and earnings are down, and in a trough - hence prices are low. Even at that, Buffett is paying considerably more than anybody else in the market, so I don't think that a contention that BNSF is underpriced is valid. Buffett's always been a 'value' investor = ''buy low, sell high''. This is just the first step of that process, and as such, is completely consistent with that philosophy. Erie and PC had serious operating problems - like hemmorraghing cash - so bad that changes in ownership were like changing captains on the Titanic after it hit the iceberg - no one could realistically save them. And you'll have to be more specific about N&W - my understanding is that it has always been profitable and well-run, just more so in some years than others, despite Stuart T. Saunders' attempted corporate financial machinations, unlike Penn Central. To put Buffett into that same category is unfair to Buffett - you'll have to come up with more evidence or a history of him doing that to acquired companies for that to have any credibility with me.
- Paul North.
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bubbajustin
Joined on
01-28-2009
Down Yunder' by the Norfolk Southern
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Re: Warrne Buffet is Robbing BNSF railroad.
All I can say is probably to go out and take some pictures.
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jeaton
Joined on
09-09-2002
SE WI
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Re: Warrne Buffet is Robbing BNSF railroad.
bubbajustin:
All I can say is probably to go out and take some pictures.
Where do you think they will put the gecko?
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CShaveRR
Joined on
06-26-2001
Lombard (west of Chicago), Illinois
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Re: Warrne Buffet is Robbing BNSF railroad.
jeaton:
Where do you think they will put the gecko?
Next to Chico.
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BNSFwatcher
Joined on
05-27-2009
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Re: Warrne Buffet is Robbing BNSF railroad.
Who is "Warrne Buffet"? What is the BNSF "Railroad"? Profits "beinf sipioned" off, "defered maintance", "Allegany Corporation"??? How does one "buffet" up a business, except on a cruise ship? Ja rozumie i movie po Polsku, takze. Try it again, in Polish, prose bardzo. Darn! Maybe the UFT/NEA has struck again! Psia krew, cholera!!
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csmith9474
Joined on
04-21-2005
Colorado Springs, CO
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Re: Warrne Buffet is Robbing BNSF railroad.
CShaveRR: jeaton:
Where do you think they will put the gecko?
Next to Chico.
Did Harvey have any gecko recipes?
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PolishPower2
Joined on
10-29-2009
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Re: Warrne Buffet is Robbing BNSF railroad.
Warren Buffet and his Freind Bill Gates are Capitilists. Karl Marx may or may not be right about the solution to capitilism but he was right about what capitlism is and its affects on the worker. I am affraid that we have just witneses the return of the big trusts that we saw in early 20th century. Now Goverment will have a excuse in personfing these trusts in Warren Buffet just like they did with Rockefffer and Jay Gould and Carnegie..Look for regulation to try and bust these trusts up.
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Paul_D_North_Jr
Joined on
10-12-2006
Allentown, PA
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Re: Warrne Buffet is Robbing BNSF railroad.
Just imagine the ads:
"In 15 minutes, you could save 15 per cent on your shipping costs."
"BNSF: So easy, a caveman could do it."
"I've got good news - I just saved a bunch of money on my shippping costs by switching to BNSF !".
[from http://en.wikipedia.org/wiki/GEICO_ad_campaigns - some people have waaay too much time on their hands]
- Paul North.
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Deggesty
Joined on
08-22-2005
Near the Crossroads of the West
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Re: Warrne Buffet is Robbing BNSF railroad.
PolishPower2: Now Goverment will have a excuse in personfing these trusts in Warren Buffet
I am sorry, but I cannot decipher "personfing." Can you, please, explain what you mean by this expression, since it is not a word found in the English language? Thank you.
Johnny
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PolishPower2
Joined on
10-29-2009
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Re: Warrne Buffet is Robbing BNSF railroad.
Personifing as in Satan Himself or something like that 
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