Speaker valued BNS at $120-$150/share, above the $90 buyout price.

The first deal I saw him make was in 2008. It was publicly known that he made it, but he mostly doesn't really announce it. He was trying to buy Burlington Northern Railway.

I was looking at it and thinking, "Well, maybe this railroad is worth $120 a share." It is trading at around $80. This is Burlington Northern. I know that Buffett is trying to buy it.

He sells people insurance policies against a company he does not own. It guarantees them the possibility of leaving that company if they wish to do so. If the fires continue to burn and they want to get out, Warren is the buyer.

They pay him huge sums of money to take that risk.

As for Warren, he looks around wondering, "How do I get enough from this company at these low prices that I want to buy at without raising the share price?" And that's what he did.

In one deal I saw in the newspaper, he raised $11 million from that deal. He quietly managed, while the stock price continued to fall, to acquire that stock without it becoming, you know, front-page news, "Warren Buffett buys Burlington Northern."

In the end, the stock price fell enough. I started buying it in the sixties and then continued buying as it dropped to the fifties. Then Warren finally said, "Well, I bought all of this I could."

He made an offer to the company for $90 per share, I believe. He bought the rest of its shares. The entire company.

Yes, he bought the whole company and I was very disappointed. It's very difficult to find a great company that you'd want to stay with forever, and here I am owning a lot of Burlington Northern shares at an average price of about $58 per share, and Buffett confirms my point about its value by offering $90.

I thought it was worth between $120 and $150, but he took it all. He took it all.