Commentaries

A bet on America? More like a bet on a black future

November 4, 2009

“Warren Buffett bets $27 billion on America” was how the FT greeted Berkshire Hathaway’s acquisition of the biggest train set in the West. Heritage, romance, aesthetics, and a green tinge to boot, those babies have everything. You can almost hear that ol’ whistle blowing.

from Rolfe Winkler:

Burlington…not so Buffett-like

November 3, 2009

So I thought I'd do a little number crunching on Buffett's Burlington deal. What does that tell us? That Buffett is paying a full price for a business with mediocre returns on capital, that he's betting on growth, not value.