UP, Norfolk Southern revealed in Berkshire Hathaway portfolio
Just a month after becoming the largest shareholder of the Burlington Northern Santa Fe railroad, Warren Buffett's uber holding company, Berkshire Hathaway Inc., revealed Tuesday that it has acquired a sizable stake in California's other Class I railroad, Union Pacific.
Just days after the announcing the acquisition of a nearly 5 percent stake in BNSF on April 6, the holding company said it invested $700 million in an unidentified second railway and slightly less in a third.
U.S. Securities and Exchange Commission documents filed this week show that as of the end of last year, Berkshire owned 8.21 million shares of Omaha, Neb.-based Union Pacific valued at $755.6 million. This represents slightly more than 3 percent of the firm's outstanding shares.
The third investment was revealed as Norfolk, Va.-based Class I railroad Norfolk Southern, of which Berkshire Hathaway now owns 3.95 million shares, valued at $198.9 million. This represents about 1 percent of Norfolk Southern's outstanding shares.
Berkshire's original 16.1 million-share investment in the Fort Worth, Texas-based BNSF had grown to 39 million shares by early April.
According to the filings, the purchases of railroad stock began sometime between July and September.
