Buffett's Comments Spark 6% Drop in CSX Stock to $32.57

CSX dropped 6% to $32.57 after Warren Buffett commented on a potential rail deal to CNBC. Buffett's comments sparked speculation about the future of the rail industry and the potential impact on CSX's stock. The drop in CSX's stock price indicates investor uncertainty about the company's prospects and the potential for disruption in the rail industry.

CSX Corporation's stock dropped by 6% to $32.57 after Warren Buffett commented on a potential rail deal to CNBC. The Berkshire Hathaway Chairman stated that his railroad, BNSF, would not acquire rival CSX, leading to investor uncertainty about the company's prospects and potential disruption in the rail industry [1].

Buffett's comments, made during an interview with CNBC's Becky Quick, revealed that while he met with CSX CEO Joseph Hinrichs earlier this month to discuss deeper cooperation, he did not intend to make a bid for the rail company. Instead, BNSF and CSX announced a partnership to provide coast-to-coast rail services, aiming to increase efficiency without the need for a merger [3].

The railroads' partnership, announced on Friday, aims to move freight across the U.S. more efficiently. This move comes amidst speculation that Berkshire Hathaway could join the takeover fray following Union Pacific's proposed $85 billion combination with Norfolk Southern last month [3].

Investors reacted negatively to Buffett's comments, with CSX's stock price dropping significantly. The uncertainty surrounding the potential for a Berkshire-led railroad megamerger, which could have reshaped the U.S. freight rail industry, contributed to the stock's decline [1].

The potential for a Berkshire-CSX merger had been explored in the context of strategic and financial logic. Analysts argued that such a move could reshape the sector, aligning antitrust realities, market dynamics, and Buffett's disciplined acquisition philosophy. The deal could have created a transcontinental system capable of challenging industry leaders, while also unlocking significant synergies [2].

However, Buffett's decision not to pursue a bid for CSX means that investors will need to monitor regulatory developments and CSX's share price for signs of a potential bid from another suitor. The partnership between BNSF and CSX could also provide a basis for further cooperation, potentially leading to operational improvements and increased market efficiency.

In conclusion, while Warren Buffett's comments sparked uncertainty and led to a significant drop in CSX's stock price, the partnership between BNSF and CSX offers a path forward for increased efficiency in the rail industry. Investors should continue to monitor regulatory developments and the potential for further cooperation between the two railroads.

References:
[1] https://sherwood.news/markets/warren-buffett-not-buying-csx/
[2] https://www.ainvest.com/news/strategic-financial-logic-berkshire-hathaway-bid-csx-2508/
[3] https://www.cnbc.com/2025/08/25/warren-buffett-is-not-in-market-to-buy-another-railroad-but-he-met-with-csx-ceo-about-greater-cooperation.html