BRK has two interesting opportunities sitting right in front of it.

First, it appears to be a given that UP is going to make an offer for Norfolk-Southern. Greg should talk to CSX and reach an agreement on a deal. It won't be cheap but the reality is that BNSF will have no choice but to buy it. An analyst predicted that BRK would have to pay 25X earnings. Do it and do it quickly while UP is still in negotiations.

Second, speculation is that Kraft-Heinz is going to split the company in a scenario that makes me think of good bank/bad bank. Heinz and a few other higher margin businesses will supposedly become a separate company. Can BRK craft a deal where it can buy Heinz and those businesses using their current stock ownership and cash? If ever there was a time to pay a premium for an asset this is it. They would be done with the other Kraft businesses and have 100% ownership of an iconic business that has proven to have staying power....a one of a kind asset.

For years many here have dreamed of buying an elephant. A quality large cap business selling at a low price. Dream on..it's not going to happen. BRK needs to look more at See's candy type scenarios where you're buying a great business at a fair price and these days it is a fair price + a premium. Otherwise it's time to go all in on repurchases and/or a dividend.

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