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Rail Stocks Rally After Another Warren Buffett Buy

UPDATED AT 4:45pm ET, Monday, August 20

Burlington Northern and two other rail stocks owned by Warren Buffett rallied strongly today (Monday) after another vote of confidence from Mr. Buffett.

As we first reported late Friday, Warren Buffett's Berkshire Hathaway holding company revealed in an SEC filing that it bought another 1.4 million shares of Burlington Northern last week at $76.50 and $78.96. That brings his total stake to 42 million shares, which is just under 12% of the railroad's outstanding stock. Buffett also has stakes in Union Pacific and Norfolk Southern, although the exact size of those holdings was withheld from Berkshire's most recent portfolio filing (with the SEC's permission, of course.)

At today's close: Burlington Northern was up 2.5% to $81.58, Union Pacific gained 5.5% to $111.73, and Norfolk Southern picked up 2.9% to $52.46. While it's been a pretty good day for the overall market, the three rail stocks outperformed both the Dow Transportation index (up 1.8%) and the S&P 500 (essentially unchanged.)

Here are the latest real-time quotes:

Symbol
Price
 
Change
%Change
NSC
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UNP
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Questions? Comments? Email me at buffettwatch@cnbc.com