TLDR
- Berkshire Hathaway shares were at $485.39, down 0.74%, after Buffett ruled out a CSX merger.
- Buffett confirmed he and Greg Abel told CSX CEO Joseph Hinrichs no deal was coming.
- CSX shares fell over 4% while Union Pacific and Norfolk Southern slipped more than 2%.
- Instead of a merger, BNSF and CSX announced new coast-to-coast freight services.
- Berkshire’s long-term stock returns still outpace the S&P 500 despite softer YTD gains.
On August 25, 2025, Berkshire Hathaway Inc. (NYSE: BRK-B) shares traded at $485.39, down 0.74%, after Chairman Warren Buffett told CNBC that his company has no interest in acquiring another railroad.
Berkshire Hathaway Inc. (BRK-B)
His remarks ended weeks of speculation that Berkshire’s BNSF Railway might pursue a deal with CSX Corporation. The clarification hit CSX shares, which dropped more than 4%, while other rail stocks like Union Pacific and Norfolk Southern also declined.
A Meeting Behind Closed Doors
Buffett, joined by CEO-designate Greg Abel, met CSX CEO Joseph Hinrichs in Omaha on August 3 to address speculation directly. In a private meeting without advisors, they told Hinrichs that Berkshire would not pursue a bid for CSX but emphasized that deeper cooperation could bring many of the same advantages as a merger. Buffett later repeated this on CNBC with Becky Quick, underscoring that BNSF was not positioned to buy another railroad.
Strategic Cooperation with CSX
While dashing merger hopes, Buffett pointed to a new partnership between BNSF and CSX announced last week. The two railroads will provide coast-to-coast freight services, expanding efficiency without the costs and complexities of a merger. This approach allows the companies to benefit from extended connectivity while sidestepping regulatory hurdles and acquisition premiums. Investors, however, had been hoping for a blockbuster deal to rival Union Pacific’s $85 billion bid for Norfolk Southern, which rattled the industry last month.
Market Impact and Investor Pressure
Buffett’s comments sparked a market pullback for rail operators, reflecting dashed hopes of consolidation. CSX, already under pressure from activist investors, took the sharpest hit. Ancora Holdings, which recently boosted its stake in CSX, has urged the board to explore strategic alternatives, including mergers with BNSF or Canadian Pacific Kansas City. The firm has warned that CSX risks lagging behind rivals by waiting for Berkshire to initiate major moves.
Berkshire Hathaway Stock Performance
Despite a dip on the day, Berkshire Hathaway’s long-term stock record remains robust. The company’s year-to-date return stands at 7.08%, trailing the S&P 500’s 9.65%. Over one year, BRK-B has gained 7.06% compared to the index’s 14.46%. Yet, across three years, Berkshire has delivered 62.81% returns versus 53.58% for the S&P 500. Its five-year return of 127.51% also outpaces the benchmark’s 87.28%. This long-term resilience reflects the strength of Berkshire’s diverse portfolio, even as short-term headlines influence trading.
