Transportation
Buffett Keeps Riding The Reading Railroad (BNI)
Published:
Last Updated:
Burlington Northern Santa Fe Corp. (NYSE: BNI) does not have a new shareholder. But Warren Buffet’s Berkshire Hathaway Inc. (NYSE: BRK-A) did increase the size of the stake held in Burlington Northern. In another unusual Buffett style move, this was not just a normal "let’s just buy some more of this one."
Warren Buffett and friends exercised options contracts on the vestingand expiration date of December 11 at $75.45 for some 2,217,500shares. Buffett now holds 70,089,029 shares, or a stake of 20.47% inBurlington Northern.
This is via the National Indemnity Company subsidiary of BerkshireHathaway. As reported on a Form 4 filed December 5, the "NICO"unit wrote a put option on December 3, pursuant to which it isobligated to buy 2,325,000 shares of BNI Common Stock from Citibank,N.A. for an exercise price of $75.00 per share, if Citibank exercisesthe put option.
Shares closed up 0.2% today at $71.53. The 52-week trading range is $68.31 to $114.58.
- Buffett did another synthetic trade like this in BNI, which he was later "put" in the shares.
- Full Buffett Holdings as of his last report
Jon C. Ogg
December 15, 2008
It’s Your Money, Your Future—Own It (sponsor)
Are you ahead, or behind on retirement? For families with more than $500,000 saved for retirement, finding a financial advisor who puts your interest first can be the difference, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors who serve your area in minutes. Each advisor has been carefully vetted and must act in your best interests. Start your search now.
If you’ve saved and built a substantial nest egg for you and your family, don’t delay; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.