Imwonder if they eventually wish to control the RR. If so, how much more must they acquire? Boxcab E50
I guess that would depend on how you define control. Buffett is already the largest skareholder. Rough numbers he onws 60 million share (60,828,818 according to Forbes.com) with about 351,000,000 share outstanding. So about 17% to 18% ownership. So that means that Buffett also has 17% to 18% of the vote. So to have true "control" of BNSF Buffett needs about 115 millions more shares (50%+). In order to buy a mojority share Buffett needs to divest himself of all other railroad stock that he owns. But truth be told he already has a controling interest in BNSf. Adam
Adam- I agree. De facto, he already has control. Didn't he recently sell off some stocks in other railroads? Thus, I started wondering... Boxcab E50
Ken, I think he got rid of some or all of his UP stake. So far anytime the BNSF stock drops below $77-$78, buffet buys...that's been his buying pattern so far. I remember reading somewhere that he wanted a 25% ownership. But for the right price you never know what will be bought. Also I think buffet recently bought shares of a company that makes tank cars. Some think buffet recognizes ethanol as a new fuel source. Ethanol is shipped by tank car and by train…if this is for sure what buffet is thinking than I understand what and why he is buying. I think BNSF has some of best access through the middle of all the major cornfields.
This sounds vaguely familar. I believe they did buy into something.... My only question is- Can that anticipated market be sustained? It's already heavily impacting our food supply. And that household expense as well. One bad crop year, and disaster awaits. Boxcab E50
