This morning we learn that Warren Buffet has bought the Burlington Northern RR BNI. He paid about $25 above market at $100, the largest purchase ever for Berkshire.Buffet declares that buying a RR is tantamount to buying America, a bet on the country.
Again, see the Black and Decker Stanley post, acquisitions and mergers are inclusionary, and top of the market activity. Oh we think the market is going up into the spring but …
The Dow Transport Average has not confirmed the new high in the Dow Industrials. BNI is a big component of the Transports, so this will buoy the Trannies. And Buffet is a big Barack supporter, and the market needs a boost here to stay up. So look for the Transports to be up today, it will be interesting to see how the Transports finish the week!
Professor Elam 
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