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.
Friday, November 6, 2009
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