Fred's comment:
I would have to agree that Buffett is the MJ of investments. No doubt BNI is pleased with the attention. Your love and knowledge of BNI is clear, so would you say that Buffett is trying to position Berk Hathaway for a takeover? (This article from NewsVisual makes a case for it: http://www.newsvisual.com/newsvisual/2007/08/as-berkshire-up.html ).
Urb Reader Response:
Fred, I wanted to say thanks for reading the article and throwing a very good question into the hat. After reading the article, it does make an interesting viewpoint on the many connections that BRK has with BNSI. However, I will use that same article and take a slightly different stance. I don't think that Buffett will buy BNSI because of the following:
- He has made multiple purchases in the sector and a quick SEC search will review his ownership in Union Pacific (10.5M shares) and Norfolk Southern (6.4M shares). I view these purchases as Buffett being bullish on the sector as a whole. Another long shot viewpoint could be he may try to use his influence to stir up further synergies amongst the companies. I would even say a possible merger, but I am unsure of the regulatory scrutiny over that type of transaction in this very mature industry.
However, I recently learned that Buffett had added an additional 845K shares to up his stake to 15% today. This again is another bullish sign for long term buyers.
No comments:
Post a Comment