FINANCIAL TIMES: BNSF chief hits at short-termism

The chief executive of North America’s second-biggest railway company has criticised stock market analysts’ short-termism as he prepares to delist the company following its takeover by Warren Buffett.

Matthew Rose, chief executive of Burlington Northern Santa Fe, said it could be frustrating dealing with quarterly earnings announcements when the company’s investments were far longer term.

Berkshire Hathaway, the investment vehicle for Mr Buffett, the world’s most successful investor, announced in November that it was offering cash and shares for the 77.4 per cent of BNSF it did not already own. The deal, Mr Buffett’s biggest-ever takeover, values BNSF at $44bn.

The deal is due to go through on Friday after shareholders on Thursday voted overwhelmingly to accept the offer.

Mr Rose said BNSF’s locomotives lasted 20 years and trackwork 30 to 40 years, but analysts lacked a long-term perspective.

“That’s something our country really has lost sight of,” he said after the shareholder meeting.

Mr Buffett tended to see the wider picture beyond an individual quarter’s results, he said.

“This team will always be very performance-driven and we will be looking to put up great numbers in terms of running these assets,” Mr Rose went on. “But we will not be worried necessarily about an individual quarter.”