Buffett Rules Out Railroad Buyouts as Berkshire's $260M Volume Ranks 342nd in Active Stocks

On August 25, 2025, Berkshire Hathaway (BRK.A) closed with a 0.64% decline, trading at a volume of $260 million—a 32.35% increase from the prior day, ranking 342nd among active stocks. The move followed statements by CEO Warren Buffett clarifying the company’s strategic stance on rail industry consolidation.

Buffett explicitly ruled out acquiring another railroad during a CNBC interview, confirming discussions held with CSX CEO Joseph Hinrichs earlier in the month. He emphasized a focus on enhancing collaboration between BNSF Railway and CSX to optimize freight efficiency rather than pursuing a merger. The two companies recently announced a coast-to-coast rail partnership to streamline operations without a costly acquisition.

This development comes amid heightened industry speculation after Union Pacific’s proposed $85 billion merger with Norfolk Southern. While Buffett’s remarks alleviated some pressure on the sector, they underscored Berkshire’s current reluctance to expand its rail holdings. The decision aligns with a broader strategy of prioritizing operational synergies over large-scale acquisitions.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day resulted in a moderate return. From December 2021 to August 2025, the total profit was $2,940, with a maximum drawdown of $1,960. The Sharpe ratio of 1.53 highlights strong risk-adjusted returns. December 2021 was the most profitable month ($840 gain), while August 2025 recorded the worst performance ($790 loss).