As M. Armstrong claimed that there is an insider gang of bigger scale to whom Buffett belongs I think this transaction is on behalf of an overall order to do so (Saturn square his Mars says that an authority makes him do things againsthis own will). Furthermore he has Pluto opposite his Mars and the Pluto /Saturn square building in the sky right now is exactely on his t-square. All actions recently and in near furure do not come from his own will. I do also believe that he ows his fortunes to a bigger organization working in the shadows as some other guys I wrote about ( Berlusconi and Abramovich just to name 2).
To buy at the potential market highs for the next months a company with a 150 year old technology at premium is frankly stupid.
At Bloomberg they come up with replacement value bullshit coming up with 180 Dollar per share - its always funny how they come up with some explanation how the emperor is not naked.
As I have stated in earlier posts its now time to get out ouf Buffett investments as he will loose a fortune within 2 years.
By Andrew Frye and Hugh Son
Nov. 3 (Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. agreed to buy railroad Burlington Northern Santa Fe Corp. in the company’s biggest takeover.
Buffett’s firm will pay $26 billion, or $100 a share in cash and stock, for the 77.4 percent of the railroad it doesn’t already own. Including his previous investment and the assumption of debt, the value of the deal is about $44 billion, Omaha, Nebraska-based Berkshire said in a statement today. That compares with the railroad’s closing price yesterday of $76.07.
“It’s an all-in wager on the economic future of the United States,” Buffett said in the statement.
Berkshire has been building a stake in the Fort Worth, Texas-based railroad for more than two years as Buffett looked for what he called an “elephant”-sized acquisition in which he could deploy his company’s cash hoard, valued at more than $24 billion as of the end of June. Trains stand to become more competitive against trucks with fuel prices high, he has said.
“It is Warren being Warren, taking advantage of a market that is soft at a time when the possibility for competitive bids is relatively low,” said Tom Russo, a partner at Gardner Russo & Gardner, which holds Berkshire shares. “He looks at this as a business that has advantages against other forms of transportation.”
At $100 a share, Buffett is paying 18.2 times Burlington’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. Burlington Northern shares have dropped 13 percent in the 12 months through yesterday.