Berkshire Hathaway: Backyard

26 billion-dollar acquisition-Buffett gave himself an oversized retirement fireworks, who Centia the backyard but fire. Wen |CBN reporter Chui U.S. local time November 2, has been considering a successor to the people of the Warren Buffett gave himself a large retirement fireworks-Berkshire Hathaway (Berkshire Hathaway) announced the largest ever deal-　　BNSF (Burlington Northern Santa Fe), one of the largest railway operators in the United States, was purchased in 26 billion dollars. BNSF is one of the best managed railway companies in the United States, headquartered in Texas Fort. Buffett has long won a stake in bnsf22.6%, the goal of the acquisition is to spend 260亿来 buy the remaining 77.4%. In this proportion, BNSF's market capitalisation is as high as $34 billion trillion.　　In addition, Buffett has to bear BNSF as much as $10 billion trillion of debt, so Buffett's valuation of BNSF is 44 billion dollars-more than the BNSF Monday closing price premium of 31.5%. Berkshire Hathaway pays $16 billion in cash for the acquisition, half of which comes from its own funds, while the other half needs to be publicly raised through the market.　　The cash accounts for 60% of the deal, while the remaining 40% per cent is paid in Berkshire Hathaway, where BNSF shareholders can opt for $100 trillion in cash each, or in return for Berkshire's a-share or B-shares. The takeover was risky, but the 79-Year-old said: "This is a total gamble on the future of the American economy, and I love these bets." "The problem is that the financial crisis has not yet dispersed, and the momentum of economic recovery is not obvious, this retirement fireworks, although enough bright, but let the backyard of the Warren Buffett Fire." Some shareholder representatives have filed a lawsuit against the court on the grounds that Mr. Buffett's deal would harm shareholders ' interests.　　If the lawsuit succeeds, the takeover process may be forced to delay.　　Of course, Buffett will not easily let the deal blocked, he coveted the railroad company is not a day two days. "Before you buy any business, determine how strong it is to withstand new technology and price competition." "This is Buffett's consistent" philosophy of acquisitions, and now he believes that no advanced technology can make rail transport obsolete. Moreover, BNSF's position is not only a transport business that still has a promising future.　　BNSF's tracks across the Midwest and north-west of the United States are the only way to supply coal to U.S. power plants, while Berkshire's U.S.-China energy company, which specializes in gas pipelines and energy operations, is in need of BNSF services. But Berkshire's shareholders were dissatisfied. This is not necessarily because they do not believe that the BNSF Railway will bring greater profits to the company in the future, and that the paradox may come from a more nuanced point: Buffett has made Berkshire a lot of money, but for him the scale itself is a problem: "If you have only a small amount of money to invest in, you will put your money into projects that you think are particularly valuable, but most of the time, the big money is the hell of the investors. "There are good ways to solve this problem, such as paying too much cash in dividends to shareholders, but think about the amount of personal income tax that Mr Buffett personally has to pay if he has a 26% stake in Berkshire."　　The only sensible way for Mr Buffett, who is a manager, is to spend money on big companies-and other shareholders are not happy!　　Perhaps shareholders should be more confident of Mr. Buffett--see what concessions he made in the deal: Buffett has always opposed the use of the company's shares to buy companies, but the deal's 26 billion U.S. dollars in 40% of Berkshire's shares, he must be a good bet that the investment will produce a good return. "There is no doubt that America's best days are still in the future. "After the deal was announced, Buffett said.