Warren Buffett announced that Berkshire Hathaway is going to acquire Burlington Northern in a $44 billion deal and said he is “betting on America.” Is it really the right time to bet on U.S. companies? Thomas Russo, partner at Gardner, Russo & Gardner, shared his insights.
“I think it’s less about the immediate economy and about the current result, but the opportunity to put into the Berkshire portfolio forever one of the great treasures,” said Russo.
Burlington "will profit Berkshire shareholders for a long time to come and [Buffett] is able to buy it at a time when the problem that normally confronts Berkshire—that others try to outbid him—won’t necessarily happen.”
Russo said investors should be looking into businesses that have “global reach.” He recommended the following companies.
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What Experts Say About Berkshire's Acquisition:
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Russo owns shares of WFC, CMCSA, MO, BRK.A, and BFA.