Warren Buffett's 18 percent stake in Burlington Northern Santa Fe is worth even more today (Tuesday), after the railroad reported a 30 percent increase in first quarter earnings, beating Wall Street's expectations. (BNSF's Q1 conference call has been posted on the company's web site.)
The stock is once again traded at an all-time high today, approaching $106 a share before retreating.
Burlington Northern's profits are getting help from the commodities boom. While the railroad's fuel costs are higher, it's doing big business moving in-demand agricultural products and coal. Revenues from moving ag products increased a whopping 38 percent to $866 million.
As we noted about two weeks ago in the WBW post Warren Buffett's Railroad Ride Paying Off as Burlington Northern Hits All-Time High, Burlington shares have been rallying strongly since Buffett's Berkshire Hathaway completed its most recent round of Burlington buys in January. At midday today, they're up almost 35 percent from the close on January 22. That was the last day of a string of purchases in the mid to high $70s.
As you can see from the links at the bottom of this post, Buffett also accumulated Burlington shares last summer and fall.
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Buffett Buys Burlington
Burlington Northern Rallies Over 15% After Warren Buffett's Daily Buying Spree (February 4)
Warren Buffett Keeps Chugging With Daily Burlington Northern Buys (January 24)
Warren Buffett's Burlington Northern Stake Tops 18% As Daily Buying Spree Rolls On (January 19)
Warren Buffett's Burlington Northern Stake Nears 18% As Buying Accelerates (January 16)
Warren Buffett Resumes Burlington Northern Stock Buys, Adding to Stake Every Day This Week (January 10)
Warren Buffett Edges Burlington Northern Stake Higher in First Buy Since October (January 10)
Warren Buffett Was Selling Two Railroads As He Bought a Third (October 15, 2007)
Warren Buffett's Burlington Northern Stake Tops 17% as Berkshire Hathaway Exercises Options (October 5)
Berkshire Hathaway Buys a Few More Burlington Northern Shares (September 24)
Warren Buffett's Berkshire Hathaway Adds to Burlington Northern Options (September 20)
Why Warren Buffett Is Riding the Rails (Sept. 7)
Warren Buffett's Berkshire Hathaway Moves to Boost Burlington Stake Yet Again (Sept. 4)
Warren Buffett's Berkshire Hathaway Buys Burlington For Fourth Time This Month (August 30)
Burlington Northern: Just What's Warren Up To? (August 28)
Warren Buffett's Berkshire Hathaway Still Riding the Rails with $800 Million Stock Buy (August 27)
Rail Stocks Rally After Another Warren Buffett Buy (August 20)
Warren Buffett Boosts Burlington Northern Stake .. Again (August 17)
Buffett Boosts Bet on Burlington (August 8)