Friday, November 6, 2009

Buffett's Biggest Investment; Corporate Welfare

Don't be confused by Warren Buffett's latest and biggest investment acquisition, via investment vehicle Berkshire Hathaway, of Burlington Northern Santa Fe.

The railroad acquisition by Berkshire Hathaway should not be mistaken as a sign of economic growth or consolidation, as mergers and acquisitions typically indicate. Rather, the investment move by Buffett, a fellow Obamanomic, government interventionist supporter, is a tactic to position himself to reap rewards from government largesse -- similar to Berkshire's large investment in Goldman Sachs, circa 2008.

Look for near-future government subsidization of the railroads (part of the so-called infrastructure spending stimulus) to justify (and serve as payback) Warren Buffett's investment move.

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