Warren Buffett puts an all-in wager on the economic future of the United States

[w¡n9Nµ7 §£@¥€r 123]

NEW YORK – Warren Buffett's Berkshire Hathaway Inc. on Tuesday agreed to buy Burlington Northern Santa Fe Corp., making a $34 billion bet on the future of the U.S. economy.

Burlington Northern, the nation's second-largest railroad, is the biggest hauler of food products like corn and coal for electricity, making it an indicator of the country's economic health. The railroad also ships a large amount of goods from Western ports including everyday items such as refrigerators, clothing and TVs.

...

"Berkshire's $34 billion investment in BNSF is a huge bet on that company, CEO Matt Rose and his team, and the railroad industry," Buffett said in a statement.

"Most important of all, however, it's an all-in wager on the economic future of the United States. I love these bets," he said.

...

Analysts say Buffett is looking for an investment that will reap rewards for many years into the future, and isn't so concerned about immediate gains.

"(Buffett is) buying at the trough — things aren't going to get much worse. He's getting in at a good time," said Art Hatfield, an analyst with investment firm Morgan Keegan.

http://news.yahoo.com/s/ap/20091103/ap_on_...ington_northern

[SMR 368]

NEW YORK – Warren Buffett's Berkshire Hathaway Inc. on Tuesday agreed to buy Burlington Northern Santa Fe Corp., making a $34 billion bet on the future of the U.S. economy.

Burlington Northern, the nation's second-largest railroad, is the biggest hauler of food products like corn and coal for electricity, making it an indicator of the country's economic health. The railroad also ships a large amount of goods from Western ports including everyday items such as refrigerators, clothing and TVs.

...

"Berkshire's $34 billion investment in BNSF is a huge bet on that company, CEO Matt Rose and his team, and the railroad industry," Buffett said in a statement.

"Most important of all, however, it's an all-in wager on the economic future of the United States. I love these bets," he said.

...

Analysts say Buffett is looking for an investment that will reap rewards for many years into the future, and isn't so concerned about immediate gains.

"(Buffett is) buying at the trough — things aren't going to get much worse. He's getting in at a good time," said Art Hatfield, an analyst with investment firm Morgan Keegan.

http://news.yahoo.com/s/ap/20091103/ap_on_...ington_northern

Considering there really aren't a lot of assets you could purchase that aren't tied to the US economy, I find the quote that it's an all-in wager somewhat ironic. What would he buy if he wanted to bet against the US economy? I guess he could stockpile gold, canned food, and guns, but at $34 billion, that gets a little ridiculous, even in gold (that's about 1000 tons of gold, if he could manage to buy that much without driving the price through the roof).

[mawilson 2,133]

What would he buy if he wanted to bet against the US economy?

The rest of the world. Right now, the US economy is dragging the rest of the world down.

Think how much money is being borrowed from the rest of the world to finance unproductive

expenditures in the US.

If (or when?) the US economy finally collapses, the rest of the world will do better

*because of it*.

But not just yet - the decoupling thesis is not necessarily holding up the way that some

people expected it to.