Late last night, Berkshire Hathaway (BRK-A) indicated that it purchased an additional 4.4 million shares of Burlington Northern Santa Fe (BNI) over the last three days. This additional purchase gives Berkshire almost a 22% stake in the railroad. This move isn’t really surprising, as Burlington’s shares have fallen to the low $60’s in recent days, which evidently made the price even more attractive to a long-term owner like Berkshire. Recently, chairman Warren Buffett has been chided by a myriad of pundits as some of his stock picks have dropped after he has made his initial purchase, but I think this is yet another example of him being able to opportunistically add to a position that he likes as the price has become even more attractive. Furthermore, this move is also instructive to the rest of us, as it is an additional example of using the market to serve you rather than instruct you as an investor.
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Justin
The content contained in this blog represents the opinions of Mr. Fuller. This commentary in no way constitutes investment advice. It should never be relied on in making an investment decision, ever. Nor are these comments meant to be a solicitation of business. This content is intended solely for the entertainment of the reader, and the author.
