Opinion - Nov. 5, 2009

Warren Buffett’s show of confidence in America

The “Oracle of Omaha,” Warren Buffett, has spoken. As few others can, he is putting his money where his mouth is—$34 billion of it, in fact.

Buffett and his Berkshire Hathaway group are buying the Burlington Northern Santa Fe Railroad.

Burlington Northern is the nation’s second largest railroad. His purchase, if it is approved by BN stockholders, would increase Buffett’s ownership from 22 percent.

He says this is an “all-in wager” on the economic future of the United States.

His is an optimism in the country that has not been expressed lately. It is also a vote of confidence in the nation’s much maligned railroads.

It is a vote of confidence that has not been shared locally. Railroads in this area have been in the news, too, but for different reasons. Efforts here have been to just save the declining regional lines and road beds. Lines have been abandoned. Routes have been changed because of deteriorated infrastructure. Rail beds have been turned into walking trails. Trestles have been burned and not replaced. Much of the local rail system has become storage beds for surplus rail cars. Changes in ownership have yet to guarantee the surviving routes.

Buffett, on the other hand, has declared that railroads are an important part of America’s future, being fundamental to the country’s economic well being.

Buffett’s confidence in the continuing importance of the railroad industry, as well as his confidence in the future of the country, is the real news. His approach has long been different than most investors who seek a quick profit regardless of the consequences. He is in for the long haul, and he sees railroads as both a positive investment and a vital American asset that cannot he lost.

They are a vital asset locally as well. Efforts to save them, in lieu of $34 billion, need public support.

Gordon Forgey

Publisher