Billionaire Buffett Adds to Railroad Stake
Monday November 3, 8:32 am ET
By the tickerspy.com Staff
Not long after a Berkshire Hathaway (NYSE: BRK-A - News, BRK-B - News) subsidiary sold puts on Burlington Northern Santa Fe (NYSE: BNI - News), a bullish bet on the railroad, an SEC filing has revealed that Warren Buffett's firm has added to its Burlington Northern stake.
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According to the filing, Buffett upped his stake in the railroad by buying 825,000 shares at $79.65. Following the buy, Berkshire owns 18.9%, or 64.6 million shares, of Burlington Northern.
Looking at Buffett's holdings from the start of Q3, Burlington Northern is joined by the other two railroads he has been investing in: Norfolk Southern (NYSE: NSC - News) and Union Pacific (NYSE: UNP - News).
Among Buffett's end-of-Q2 holdings, these railroads have been middle-of-the-road performers. Rebounding financials, including Wells Fargo & Company (NYSE: WFC - News) and SunTrust Banks (NYSE: STI - News), have done best since mid-summer, followed by well-known blue chips like Anheuser-Busch (NYSE: BUD - News), Procter & Gamble (NYSE: PG - News), and Kraft (NYSE: KFT - News).
Looking at tickerspy.com's graph charting the performance of Berkshire's end-of-Q2 holdings during Q3 and beyond, it's clear that Buffett's focus on blue chips has served him well. His recent bullish bet on railroads bears watching, though.
However, investors won't be sure of where Buffett stands now until later this month, when the deadline for Q3 filings hits. At tickerspy.com, members can track Buffett's latest holdings, see a graph of their combined performance, and be notified when new holdings are made public.
