Warren Buffet’s deal to purchase Burlington Northern Santa Fe (BNI) was the biggest he’s ever made—and everyone’s got something to say about it.  The $44 billion transaction has prompted responses from investors and strategists from every walk: some gushing about his tenacity even at 79, others decrying a bearish bet, and still others (a minority for sure) providing a well reasoned “of course he bought BNI.”

Buffet’s statement indicated that he’s making a bet on the United States economy, obviously designed to provide hope to the investors that follow in his footsteps.  Some of the less panicked responses to Buffet’s investment seem to think that piggybacking on his deal is a great idea.  Railroads, after all, are more fuel efficient than trucking, and may benefit from green laws that are popping up around the nation.  Transportation purchases have recently favored railroads.  The trucking business, not the railroad industry, stands to lose due to limited pricing power as fuel costs begin once again to rise.  Only months after investors were warned to avoid gains in BNI, Canadian National (CNI) and Canadian Pacific (CP),  Buffet’s purchase launced BNI from $76 to $97 a share.  Most of the commentary seems to be providing Buffet’s pruchase a bullish slant, but perhaps for good reason—a big gamble from a successful investor is sometimes the push others need.  It creates market activity.  It hints at growth.

However, what interests may investors is the fact that Buffet used over half of Berkshire Hathaway’s cash in the purchase, leaving $20 billion left for smaller acquisitions.  (Did we mention this is a big bet?)  Some wonder why exactly Buffet would choose to spend so much on an antiquated transportation method. Diversification, protection against inflation, and worry over the value of the dollar all seem to come heavily into play for bearish individuals.  A bearish purchase is good for Buffet if the economy continues to falter and gold continues its meteoric rise.  Buffet’s professed confidence in the U.S. economy notwithstanding, the purchase may eventually result in fear among investors—after all, according to some bloggers, the 1870 depression was prefaced by rampant speculation about railroads.  It even gives those who view railroads as a “mature” industry something to think about.

What may Buffet look to next?  Speculation surrounding other railway companies has not yet cooled; however, many individuals seem to feel Coca-Cola (CCE) and Kraft are good bets, as long as Kraft can work out its differences with Cadbury.  The Wall Street Journal seems to think it’s healthcare.  Whatever the case, given the relative surprise of this purchase, determining what’s next for Buffett may be difficult.

The adage “buy into fear, sell into greed” works particularly in this case.  Investors concerned about how this may affect their picks should take note that, as mentioned above, trucking companies do not stand to benefit from Buffett’s purchase.  Landstar (LSTR) and Conway (CNW) will, according to Buffett himself, face difficult times ahead.  Selling trucking stocks and picking up railroad stocks (on good advice, of course) might be a smart move.  However, allowing speculation to get the better of you is not the smartest choice—investors may remember that Buffett’s been talking idly about railroad stocks for years and is looking toward the long-term viability of his investment, not just the speculation following the spending spree.