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Buffett Buys Carmax, Cuts Railroad Stakes

Associated Press
Wednesday, 14 Nov 2007 | 8:12 PM ET

Billionaire Warren Buffett's holding company bought nearly 14 million shares in Carmax, the largest specialty used-car retailer in the United States.

Berkshire Hathaway filed a quarterly summary of its $65.8 billion portfolio of U.S. stocks with the Securities and Exchange Commission on Wednesday.

Berkshire bought the shares -- its first of the Richmond, Virginia-based company -- sometime in July, August or September. The filing does not say how much Berkshire paid for the shares, which represent about 6.4 percent of the company, but they were worth more than $284 million at the end of the quarter on Sept. 30.

Berkshire again cut its holdings in two railroad companies, Norfolk Southern and Union Pacific , after months of buying.

Berkshire said it held 4.5 million shares of Union Pacific stock as of Sept. 30, down from the 7.4 million shares of the Omaha-based railroad that Berskhire held June 30. It is less than half of the 10.5 million shares of the railroad Berkshire held March 31, according to an earlier filing.

Berkshire also said it held 1.9 million shares of Norfolk Southern as of Sept. 30, less than the 3.8 million it owned as of June 30. Earlier this year, Berkshire held nearly 6.4 million shares of Norfolk Southern stock.

But Buffett's interest in its biggest railroad investment does not seem to be waning. An Oct. 5 filing showed he held 60.8 million shares of Burlington Northern Santa Fe . Buffett's company controls 17.2 percent of the nation's second-largest railroad.

Berkshire owns more than 60 subsidiaries that range from insurance to clothing, furniture, and candy companies, restaurants, natural gas and corporate jet firms. Berkshire also has major investments in such companies as Coca-Cola Co., Anheuser-Busch Cos. and Wells Fargo.

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