
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.
No comments:
Post a Comment