A couple years ago, as you may recall, the corporate world was developing some cracks. Into the breach stepped Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) chairman Warren Buffett, and saved the day. He lent money to Harley Davidson and USG, and bought preferred shares in Dow Chemical, Goldman Sachs, and General Electric (NYSE: GE).
He's also profiting handsomely from his altruism. Last month, General Electric pledged to repay Berkshire in full, handing the Oracle of Omaha a $1.2 billion profit on his $3 billion investment -- but not for long.
No sooner did GE promise to make good on its loan than management let slip how it's going to make the money back. Last week, GE announced it's building a new locomotive factory in Fort Worth, Texas, home to the headquarters of none other than Berkshire subsidiary Burlington Northern Santa Fe. Logically, Buffett's Burlington will be GE's first stop when the new factory starts churning out trains. But the Oracle won't be GE's only customer. Texas is home to more railroad miles than any other state in the union, and has another major operator in the form of Union Pacific (NYSE: UNP).
Foolish takeaway
GE's refocus on manufacturing is real and underway. Pretty soon, it won't be just Buffett cutting GE checks. And this time, GE won't have to send the money back with interest.
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