A diary of the thought process behind my investment decisions
What Was Warren Thinking
Warren Buffet's buy of Burlington Northern is somewhat perplexing. The price he paid was not cheap at twenty times earnings. That is generally not the type of price that value investors like to pay. Warren Buffet has stated that he believes the value of the dollar will fall. That would help explain why he would overpay for a company. However, he used Berkshire stock to help pay for the deal as well. Unless he believes his stock is overvalued as well it is hard for me to make sense of this deal.