It is being widely reported today that Warren Buffet, the world's most famous, and arguably, successful investor, has just announced for the holding company which he chairs, Berkshire Hathaway, to buy the nation's second largest railroad, Burlington Northern Santa Fe Railaroad, or BNSF.

Berkshire Hathaway, which funds its transactions through funds generated by another of its companies, the famous GEICO insurance company, also owns about 1.9 per cent of shares of Union Pacific Railroad, the nation's largest railroad, Reuters reported.

Before the deal can be finalized, it has to be approved by antitrust regulators.  What no one is mentioning is that this deal is being announced as the House and Senate work to pass a bill that would close antitrust loopholes in the railroad industry.  Lack of competition in the railroad shipping industry has been problematic for shippers who rely on railroads to bring their products to market.  A large percentage of food and coal consumed in the US is shipped by railroad.  Many analysts have noted that the country's 4 major railroads have been able to artificially maintain higher shipping rates across the board, which has led to higher food prices, as well as higher coal prices.  Coal is burned by electric companies to make electricity which is then purchased by consumers.   It will be interesting to see what the antitrust regulators have to say about Buffet's latest deal.