Brad Ferris

Has Buffett Lost His Mind?

I think its a simple situation of Buffett realizing the worth of a well run company and having little problem overpaying (by today's standards) for future earnings that will be much higher than today's. He has shown this ability time & time again because he rationalizes his purchases different than most investors. BNI is a very good company, but don't except 30% returns for the next 10 years; it's not that type of company. What it will offer is a very good operating foundation for BRK to diversify out of so much insurance and consumer products companies. Essentially someone has to ship all that Coke, Kraft Dinner and JNJ Baby Shampoo :)

A Buy & Hold Forever Dividend Stock Portfolio

The only other stock I would suggest looking at (for Utilities) would be EXC. But a good diversified portfolio of high quality stocks otherwise!

Buffett's Buying More Burlington; Should You?

While I don't think every investor should RUSH into a stock because Buffett is buying into it - I do think that rails are a very compelling sector to own at this time. As energy prices remain at historically high levels the cost/benefit for goods to be transported via rail increases significantly.

Now most/many of them are at rich valuations compared to how the rest of the market has done and there is some economic sensitivity with the sector - but for a long-term investor who wants to be diversified you can make the case that they're a solid investment with very stable dividend yields.