
Warren Buffett's ongoing acquisition of shares in Burlington Northern Sante Fe (NYSE:BNI) has become one of the most interesting financial spectator sports throughout January 2008, as from January 7, he has made a new purchase almost every day the market has been open. The total stake in Burlington by Berkshire Hathaway (NYSE:BRK-A) now stands at over 18 percent.
The number of shares owned by Berkshire are now at 63,775,118, which equals 18.2 percent of Burlington's outstanding shares.
This is of course the habit of Buffett and all great investors, as they know times of concern, slowdowns and fear are the best time to snap up bargains. There'll be a lot more of Buffett and Berkshire Hathaway heard from over the next months as they ramp up their investments.
Buffett has said recently that there is a possibility that the US economy could drop into a recession, but slowdowns will alway be inevitable he says, and over the long haul the US economy will perform strongly.
Talking to CNBC's Becky Quick last month, Buffett said, "It is the nature of capitalism to periodically have recessions. People overshoot. So, it isn't the end of the world. I mean, as a matter of fact, for an investor, you know, it turns out to be the times when you make your best buys."
This is also important to businesses as far as looking for their own growth during this time. Opportunities will abound for those will available cash to invest. It's a major reason why companies will sit around on cash for years at a time. Now is the time to scour the landscape to buy companies or make investements.
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Tracked on: January 28, 2008 10:06 PM | Permalink to Trackback