Warren Buffett is a kingmaker in a lot of ways.
If one of his funds at Berkshire Hathaway (BRK.A) takes a stake in a company, that company automatically gets an air of legitimacy.
Even well-established brands like Apple can get a reputational bump from a Berkshire investment.
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And for struggling companies, a Buffett investment is not only an infusion of much-needed capital, but also a signal to investors and customers alike that the company has the backing of probably the most respected investor of this and previous generations.
The Oracle of Omaha has earned that influence through decades of wise, market-setting investments.
However, Buffett’s passing on an investment can also have the opposite effect on a company, and this week, one stock paid the price after Buffett shot down a rumor about a tie-up.
A recent collaboration between Berkshire-owned BNSF Railway and CSX Corp. (CSX) had some speculators convinced that a merger between the two freight railroad companies was imminent.
However, Buffett let his friends at CNBC know that the partnership was merely a collaboration, and not a takeover.
Buffett says he and Berkshire Hathaway Energy CEO Greg Abel met with CSX CEO Joe Hinrichs on August 3, days after a merger between Union Pacific and Norfolk Southern. But they only met to discuss more cooperation, not a takeover bid.
Buffett has already denied other reports that BNSF had talked to Goldman Sachs to facilitate a merger deal.
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Instead, the two companies are collaborating to offer new direct domestic routes between Southern California and Charlotte, North Carolina, and Southern California, and Jacksonville, Florida. They also plan to launch a service between Phoenix and Atlanta, as they look to convert road delivered freight to rail.
“This collaboration between BNSF and CSX demonstrates the power of partnership, delivering greater flexibility, efficiency, and value for our customers,” said BNSF Group Vice President of Consumer Products Jon Gabriel.
CSX shares were down 1.3% at last check on Tuesday after dropping 6% the previous session.
CSX shares peaked above $37 per share on August 22 as the rumors swirled. On Aug. 26, it was trading at $32.40 at last check.
Earlier this year, Buffett announced that he will be stepping down as CEO of Berkshire Hathaway, the company he took from being a small New England textile maker, to his own personal investment vehicle, to a massive corporation with 400,000 employees.
Able will be taking over the company after Buffett steps down, as Buffett says he has finally started to feel old.
“I don’t have any trouble making decisions about something that I was making decisions on 20 years ago or 40 years ago or 60 years ago,” Buffett said in an interview earlier this summer. “I will be useful here if there’s a panic in the market because I don’t get fearful when things go down in price or everybody else gets scared.
“I didn’t really start getting old, for some strange reason, until I was about 90,” he said in the interview. “But when you start getting old, it does become — it’s irreversible.”
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This story was originally reported by TheStreet on Aug 26, 2025, where it first appeared in the Investing News, Analysis, and Tips section. Add TheStreet as a Preferred Source by clicking here.