Warren Buffett · 2009 · Berkshire Hathaway Inc.
2009 Shareholder Letter
Buffett described the BNSF acquisition as a bet on the long-term future of American rail freight and, more broadly, on the American economy. He argued that rail's fuel efficiency relative to trucking, its durable right-of-way, and the capital intensity that protected it from new entrants made it an attractive long-horizon asset, and that owning it outright allowed Berkshire to redeploy the cash flows it generated rather than merely collect a dividend.
On the rationale for the BNSF acquisition.