Berkshire’s $34B BNSF Railroad Investment Nearly Doubles In 4 Years

If you think the man has lost his touch, think again.

Warren Buffett’s ‘elephant-gun’ purchase of the Burlington Northern Santa Fe, LLC (NYSE:BNI) railroad for $34 billion in 2010 was impeccably timed (coming as it did a year off the 2008-2009 financial crisis) and a huge bet on the revival of the US economy.

However, just four years later, this investment is worth at least $65 billion, according to analysts.

“Based on 8x forward EV/EBITDA and a P/E multiple of 14x our 2015 earnings outlook, this would imply a current equity value for BN of around $65bn,” say Barclays analysts Jay Gelb, Sarah DeWitt, Jessica Idiculla, John O’Brien and Adam Frank in their April 28, 2014 research note on Berkshire Hathaway Inc. (NYSE:BRK.A)...