Warren Buffett's company will sell its stakes in Union Pacific and Norfolk Southern railroads before it completes its $26.3 billion acquisition of Burlington Northern Santa Fe Corp. railroad.

Berkshire Hathaway Inc.'s plan to sell those stocks was revealed in documents filed with the Securities and Exchange Commission on Monday.

According to a transcript of a conference call, BNSF's CEO Matt Rose told employees of his railroad that Berkshire plans to sell its 9.6 million shares of Union Pacific Corp. and 1.9 million shares of Norfolk Southern Corp.

Berkshire's holdings represented 2 percent of Union Pacific and less than 1 percent of Norfolk Southern.

Berkshire officials did not immediately respond to questions on Monday. They do not typically comment on the company's stock holdings.

Berkshire last provided an update on its U.S. stock holdings in August when it listed its holdings as of the end of June. A third-quarter update is expected later this month.

Buffett said last week that the BNSF deal is essentially a wager on the U.S. economy because railroad profits tend to grow along with the nation's economy. The railroads carry raw materials and finished products for a number of industries as well as delivering coal to utilities.

Buffett has said he realized a few years late that railroads were an appealing investment. As diesel prices rise, shipping by rail instead of truck becomes more attractive, and it would be extremely difficult for a competitor to build a new railroad.

Monday's disclosure confirms that Buffett has chosen to let his rail wager ride exclusively on Burlington Northern, the nation's second-largest railroad. Continued...