March 10, 2011 by staff
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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