Burlington Northern -- a cheap buy

A report from NYTimes:

Mr. Buffett singled out Burlington Northern, for which he paid $26 billion last year for the 77.4 percent he didn’t already own, for hefty praise. Here’s how he sees the benefits of owning a majority stake in the railroad operator, which earned $3.6 billion last year, on $15.1 billion in revenue

What a cheap buy! 26/0.774/3.6=9.3, that means 10.7% profit a year...And Burlington still grows...