Will Burlington Be Buffett's Last Big Buy?

OMAHA, Neb. (TheStreet) -- Berkshire Hathaway(BRK.B) is moving ever-closer to its acquisition of Burlington Northern (BNI), but that doesn't mean Warren Buffett is done dealing.

Last week, Berkshire Hathaway issued $8 billion in senior notes to help finance the Burlington deal, and in the process, lost its last AAA rating.

Losing the AAA rating from Standard & Poor's was an event that was anticipated by the market, and it was a rating agency decision that Buffett said cost him a little bit of his pride, but cost no more than that.

A little bit of multi-billionaire pride is not much to pay for what is already in the ledgers of capitalist history as Warren Buffett's "all-in wager on the U.S. economy." Before we close the book on Buffett's wheeling and dealing with the Burlington railroad, however, there may still be some unfinished M&A business for Berkshire Hathaway.

While the Burlington Northern acquisition grabbed all the positive headlines toward the end of 2009, Buffett was also vocally negative on Kraft's (KFT)planned acquisition of British confectioner Cadbury(CBY). Berkshire owns a considerable chunk of Kraft, and Buffett let it be known that he did not want to see that chunk of Kraft shares diluted by a rash M&A decision on the part of Kraft management.

Buffett, revered for his restraint and grandfatherly profile among a sea of ruthless capitalists, went further than many expected when he scolded Kraft management for offering too much in its hostile bid for Cadbury. Buffett has always said he invests in a company like Kraft because he trusts the management team, but Buffett seemed less than trusting in the way Kraft was going about its pursuit of Cadbury. There were reports that personal Buffett investment banker Byron Trott was involved in the Kraft maneuvering to an extent beyond what Berkshire investors expected.

In the first place, those who would choose to view Buffett as a mild-mannered, bridge-playing, doting old sage of the markets are traficking in a fictional character. As one long-time Berkshire Hathaway investor, Frank Betz of Carret Zane Capital Management, said, "Don't be fooled. I have it on good authority from long-term observers that Warren Buffet can get plenty rough in the clenches."