Warren Buffett is wise to keep on truckin'

Warren Buffett is wise to keep on truckin'

Warren Buffett is wise to keep on truckin'

Warren Buffett's Berkshire Hathaway bought a stake in Pilot Travel Centers, owner of the Pilot Flying J truck stop chain, and detailed plans to become the company's biggest shareholder in six years.

Terms were not disclosed.

The ubiquitous truck stops, 750 of them in 44 states and Canada, make up the 15th largest private company in the US, according to Forbes, with 27,000 employees and revenue of more than $20 billion per year.

The chain now has more than 27,000 employees and 750 locations.

The chairman and CEO of Berkshire Hathaway Warren Buffett said Tuesday that passive investing works in any market environment and so he'd be willing to wager again against active investing for the next 10 years. Jimmy Haslam will also remain as the CEO of the chain and its current management team will be sticking around. BDT is exiting its investment in Pilot Flying J.

"This deal will set the stage for plea bargains at Pilot Flying J, and is also meant to help Gov. Bill Haslam moving forward".

The Haslam family led by billionaire Jimmy Haslam, who also controls the Cleveland Browns football team, will keep a 50.1 percent stake and the Maggelet family's FJ Management Inc will retain 11.3 percent ownership until then.

Berkshire Hathaway agreed to acquire 38.6 percent of Pilot Flying J, a closely held company based in Knoxville, Tennessee, according to a statement Tuesday.

Governor Bill Haslam, a Republican who called on President Trump to withdraw from the 2016 race in October 2016, first elected in 2010, is considering a run for the U.S. Senate seat being vacated by Senator Bob Corker.

Jimmy Haslam said Berkshire is a good fit for his family business, which the Haslam family will continue managing after the deal. Berkshire is an investor in BDT, Mr. Buffett said.

The trucking company paid $92 million in a settlement to trucking customers after the Federal Bureau of Investigation and the Internal Revenue Service uncovered a scheme in 2013 to shortchange some customers on diesel rebates.

Berkshire owns the BNSF railroad, as well as several companies that make industrial parts, including Precision Castparts and Marmon.

The investment is Berkshire's latest bet on traditional forms of transportation and USA economic growth.

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