How to buy burlington northern santa fe stock

The billionaire investor's Berkshire Hathaway Inc.

why can't Burlington Northern Santa Fe railroad stock be bought anymore? | Yahoo Answers

Burlington Northern, the nation's second-largest railroad, is the biggest hauler of food products like corn, and coal for electricity, making it an indicator of the country's economic health. The railroad also ships a large amount of consumer goods — including items imported from Asia — from big Western ports like Los Angeles and Seattle.

Analysts say Buffett is planting both feet in an industry that is poised to grow as the economy gets back on solid ground. It would be the biggest acquisition ever for Berkshire Hathaway Inc.

Up to 60 percent of the deal is cash and 40 percent is in stock. I love these bets," he said. Berkshire's board also approved a for-1 split of its Class B common stock for holders of smaller amounts of Burlington shares who opt for a share exchange instead of cash.

BNI Stock Quote - Burlington Northern Santa Fe LLC - Bloomberg Markets

Berkshire owns stock in two other major railroads — about 1 percent of the outstanding shares of Union Pacific Corp. Buffett started investing in railroads inbut has said he realized a few years late that railroads had become an appealing investment.

He thinks railroads are a key economic indicator because of the amount of retail and manufactured goods they haul across the country. Last week Burlington Northern reported third-quarter profit dropped 30 percent from a year earlier.

Burlington Northern made almost a third of its money in the last quarter from shipments of consumer products from the West to major hubs like St.

Louis, Kansas City journal of stock and forex trading Chicago. It's next largest segment was coal, at 27 percent of revenue, followed by industrial products — like farm equipment, lumber and chemicals — at 21 percent. The agricultural products segment — 20 percent of its total revenue — includes major crops like corn, wheat and soybeans — much of that exported to China.

Burlington Northern serves more of the nation's major grain-producing regions than any other railroad. Burlington aftermarket stock for ruger scout rifle been one of the least optimistic among major railroads about the pace of economic recovery. CEO Matt Rose said consumers will be the driver of any how to buy burlington northern santa fe stock in the economy, but no one is buying yet.

And coal shipments to power plants have fallen off sharply because of lower electricity demand. Burlington Northern hauls enough coal to power one out of every 10 homes in the U. The coal hauled by Burlington Northern is mined from places like the Powder River Basin in Wyoming and Montana.

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It's lower in sulfur than the coal found in the eastern U. Analysts say Buffett is looking for an investment that will reap rewards for many years into the future, and isn't so concerned about immediate gains. He's getting in at a good time," said Art Hatfield, an analyst with investment firm Morgan Keegan. Hatfield said he believes Buffett went for Burlington Northern in part because of its good management team, an important aspect in any of the billionaire's deals.

Hatfield also said that Burlington Northern has been more progressive than its peers in developing new technology, making it more profitable.

Major railroads have been able to slash costs during the recession by cutting jobs, parking railcars, improving train speeds and other moves that improved efficiency. Railroads are much more energy-efficient than trucks because they use much less fuel. An average Burlington Northern train hauls as much freight as trucks. Rails are also favored by some shippers because they can carry things that can't travel on highways, like hazardous chemicals. Burlington Northern cut its total expenses by nearly a third in the last quarter.

Labor costs fell by 17 percent from a year ago. Burlington Northern has drastically reduced its employees sinceas the recession caused freight demand to plummet. The company had about 3, fewer workers at the end of the third quarter than at the same time a year ago. Copyright The Associated Press. This material may not be published, broadcast, rewritten or redistributed. TODAY Nightly News Meet the Press Dateline Morning Joe Hardball Ed Maddow The Last Word msnbc.

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