Buffett's Berkshire buying Burlington Northern

Warren Buffett is making a big bet that the recovery remains on track, purchasing the country's second-largest railroad.

Buffett's Berkshire Hathaway holding company has agreed to buy Burlington Northern Santa Fe in a deal valuing the railroad at $34 billion. In a statement, Buffett called it "an all-in wager on the economic future of the United States."

Berkshire Hathaway already owns 22 percent of the company and is paying a premium of more than 30 percent for the rest of it. If the deal is approved by shareholders and regulators, it would be Berkshire's biggest purchase ever.

The railroad company is the biggest hauler of food products like corn and coal for electricity, which means it serves as a gauge of the health of the economy.

Copyright 2009 The Associated Press