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Buffett's Burlington Buy Lifts Railroad Stocks

The sector gets a boost after Berkshire Hathaway lifts its stake in Burlington Northern to 11.5%.
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Shares of

Burlington Northern Santa Fe

(BNI)

rose 4% Wednesday after Warren Buffett's investment vehicle,

Berkshire Hathaway

(BRK.A) - Get BRK.A Report

, 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.

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

Fellow railroad operator stocks also were climbing on the news.

CSX

(CSX) - Get CSX Corporation Report

was up $1.90, or 4.1%, to $48.28;

Norfolk Southern

(NSC) - Get Norfolk Southern Corporation Report

was adding $1.33, or 2.7%, to $51.47; and

Union Pacific

(UNP) - Get Union Pacific Corporation Report

was rising $2.88, or 2.5%, to $119.75.