Buffett Watch

CNBC Transcript: Warren Buffett Explains His Railroad 'All-In Bet' on America

Just minutes after this morning's announcement that Berkshire Hathaway is paying $26 billion to acquire the 77 percent of Burlington Northern Santa Fe it doesn't already own, Warren Buffett spoke live by phone with Becky Quick and Joe Kernen on CNBC's Squawk Box.

Just minutes after this morning's announcement that Berkshire Hathaway is paying $26 billion to acquire the 77 percent of Burlington Northern Santa Fe it doesn't already own, Warren Buffett spoke live by phone with Becky Quick and Joe Kernen on CNBC's Squawk Box.

This is the complete transcript of their conversation, that also touched on the economy, executive compensation on Wall Street, and whether capitalism has been "permanently damaged."

BECKY QUICK: First of all, how did this deal come (about)?  This comes as a huge surprise to anybody that's been watching this.  I know you've had a stake in Burlington Northern, but buying the whole thing that's a huge deal, 34 billion dollars?