Why is Warren Buffett buying railroad stocks?

Warren Buffett's investments are the talk of Wall St. and once again he has created a buzz.

In a recent filing with the Securities and Exchange commssion, Buffett's investing behemoth Berkshire Hathaway disclosed a major stake worth over $3 billion dollars into Burlington Northern Santa Fe company. The position represents a 10.9% stake.

Analysts on Wall St. believe the railroad stocks are at peak valuations so, What is the "Oracle of Omaha" seeing that they are not?

As Mr. Buffett is reaching his later years, his legacy will not only be his eagle eye for good value. He has set forth in motion a legacy of giving back so much of what he gained.

Last year his announcement of his intention to donate most of his stock holdings to various foundations included a $30 billion dollar gift to the Bill and Melinda Gates foundation for health and education in poor areas of the world.

This railroad investment represents, in my opinion, a firm belief that the rail industry is about to experience a revolution of it's own, and the investment required to help transform the industry into this new millenium, might require major stakes and investment into the infrastructure which only a man like Buffett is capable of, taking a lead where the government needs to follow.

I am sure that a man like Mr. Buffett would like to see in this day and age, where global warming dominates the headlines and a failing US auto industry that is incapable of reinventing themselves, calls for a new awakening and a new investment opportunity much like the days of the Vanderbilts, America's first railroad magnates, who themselves gave much of their fortune away to good causes.

I believe there will be more news in the future of Buffett's railroad investment plans. I believe that recent events like France's new bullet train that travels 350 mph inspires a man like Buffett to have the vision to see what impact today's world problems could have on a industry such as the railroads, and how the railroad industry could impact today's world problems.

For now though the simple equation is that surging transportation demands and lower oil prices in the next couple of years will reflect handsomely in these stocks.

This was a great investment on his part and investors should be "all aboard that train", so to speak.