For the past couple of hours I have been thinking about the Burlington Northern investment Buffett made.  I normally don't think about his purchases but his actions toward this company struck me as odd last night.  He has basically acted like a man possessed trying to accumulate the position.  UNP on a valuation basis has been cheaper and in my view it has seemed that he was willing to pay up for BNI.  When he first made the railroad investement, everyone thought it was odd and wondered why he wanted to buy a railroad.  It seems as though all the experts have analyzed and ran models regarding the benefits of BNI and railroads.  Most of those benefits apply to any railroad company.  UNP is in the same territory and basically the twin of BNI.  Why would he be so much more passionate about BNI then UNP?  Hint: It's out in the open and has nothing to do with any numbers.

Once you have that answer, you'll understand why Buffett hasn't lost his touch and was willing to pay up for the company when he could have had shares cheaper.  Could BNI be his next Coke?


Disclosure:  I have no position in BNI and not planning to purchase any shares soon b/c it doesn't fit into my goals for now.