Buffet Wagers On America’s Economic Future

Yesterday, Warren Buffet, billionaire investor, struck a deal with the shareholders of Burlington Northern Santa Fe Corporation (NYSE: BNI), one of the largest US railroad operators. FT writes that this deal will help Berkshire Hathaway Inc. (NYSE: BRK.A) in utilizing its large cash pile.

The deal size is $26.6bn. Even after the deal, Berkshire Hathaway will still have more than $ 20 billion in cash. Until yesterday, Berkshire Hathaway had a 22.6% stake in Burlington Northern Santa Fe Corporation. This takeover increases Buffett’s investments in old economy sectors. Buffet also has expressed confidence on the rebound of America’s economy. After this deal, Buffett also indicated that he will not be doing any large deals for some time.