Buffett's Burlington Buy Lifts Railroad Stocks

Shares of Burlington Northern Santa Fe (BNI Quote) rose 4% Wednesday after Warren Buffett's investment vehicle, Berkshire Hathaway(BRK.A Quote), disclosed that it has boosted its stake in the railroad operator.

Berkshire said in a Securities and Exchange Commission filing that it recently purchased 1.62 million shares of Burlington Northern, giving it total ownership of about 40.6 million shares. That represents about an 11.5% stake in the company.

Shares of Burlington Northern recently were up $3.10 to $84.35.

Fellow railroad operator stocks also were climbing on the news. CSX (CSX Quote) was up $1.90, or 4.1%, to $48.28; Norfolk Southern(NSC Quote) was adding $1.33, or 2.7%, to $51.47; and Union Pacific(UNP Quote) was rising $2.88, or 2.5%, to $119.75.