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DJMN: Buffett: Using Stock In BNSF Buy To Keep 'Comfortable Level' Of Cash-Fox Business
DOW JONES NEWSWIRES
Warren Buffett told Fox Business Network Tuesday that he's offering Berkshire Hathaway Inc. (BRKA, BRKB) stock in his purchase of Burlington Northern Santa Fe Corp. (BNI) to make sure he retains a "comfortable level" of cash. Buffett also said he considers BNSF's management "the best there is."
Buffett suggested that the Obama administration, amid calls by some shippers to re-regulate railroads, would recognize that strong railroads are in "the best interest of the country."
"The rails move freight in a much more environmentally friendly way than truckers do, and they also do so using about a third of the fuel," he said. "So it helps our trade balance. It helps the environment in the long run." Buffett also said that while coal currently provides a large part of BNSF's cargo, it will be less important over the long term.
Buffett reaffirmed his backing for President Barack Obama, and said government actions to rescue the economy over the last 15 months were all "the right things to do." Still, he acknowledged a risk of inflation, telling told Fox Business: "I would rather own working assets than have cash in a period that becomes inflationary down the road."
Buffett emphasized that he views the BNSF purchase in terms of long-term growth. "It's a bet on the American economy essentially continuing to prosper over time just as it's prospered ever since 1776," he said.
Web site: www.foxbusiness.com
-Dow Jones Newswires; 212-416-2900
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(END) Dow Jones Newswires
November 03, 2009 15:46 ET (20:46 GMT)
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