Warren Buffett

March 10, 2011 by staff 

Warren Buffett, Warren Buffett borrowed 8 billion so he can buy Burlington Northern Santa Fe Railway last year, but it is not too worried.

Buffett, Berkshire Hathaway (BRK.A) made and .25 billion in dividends from the railways in less than 13 months, reports Bloomberg. If that sounds a lot, because it is: Payment is triple what the railroad already paid before being acquired.

It is an Oracle of Omaha suspicious. Berkshire had $ 38.2 billion in cash at the end of December, and dividends from Burlington Northern will add to this cash, reports Bloomberg.

Berkshire bought Burlington Northern $ 26.5 billion – a move Buffett calls the “culmination of 2010″ in his annual letter to shareholders last month. When he bought the railroad, Buffett described the initiative as an “all-in bet” on the future of the U.S. economy.

The bet was good, as the result of the railroad expanded from 43% to 2.46 billion years and the last.

Shareholders of rival railways can really feel good dividends, reports Bloomberg. They could provide assurance that the presence of Berkshire wills not other railroads at a disadvantage.

“I did indeed wonder if Burlington Northern is a major advantage as a private entity,” said oneanlyst told Bloomberg. “This suggests that it is certainly not the case.”


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