Warren Buffet Railway Investment is a "Bet on Us" Decline

Famed investor Warren Buffett, one of the richestpartly upon Buffet's expectation of increased demand
people in the world, announced that his investment firmfrom China for American resources, and thus
Berkshire Hathaway will purchase Burlington Northerninflationary pressures.
Santa Fe (symbol BNI), the second largest railway inMost of Burlington's track lines head westward,
the United States, for an estimated $34 billion.crossing upper resource rich regions (timber, coal, etc.)
Burlington Northern owns more than 20,000 miles oflike Montana, Seattle and Vancouver. The tracks end
track in the United States and Canada, and sawin ports shipping most of their goods to and from Asia,
earnings jump more than 25% last year. Berkshireespecially China and India. This in effect means that
Hathaway already owns 22% of BNSF.Buffet's "bet on America" is a bet that the United
An analysis of the deal by pundits has some headsStates will be importing more manufactured goods
scratching. A inflation rate factor seasonal chart offrom these regions into the country and selling more
Bulington Northern shows that the stock price mostand more of its raw materials, unfinished goods and
steadily rises during periods of slowing inflation rates,natural resources rather than manufactured goods to
rather than rising, but the deal seems to be madethe growing Asia region dominated by China.