As shares of Berhshire Hathaway Inc. (NYSE: BRK.A, BRK.B) plunged over the past year, it became fashionable to ask whether or not Warren Buffett had lost his touch.

Warren Buffett’s Berkshire Hathaway Inc (NYSE:BRK.A) is finally starting to offload its 20% stake in ratings agency Moody’s Corporation (NYSE.MCO).

Railroad companies have been some the best performers in the recent rally of U.S. equities. Canadian National Railway (NYSE: CNI) CSX Corp. (NYSE: CSX), and Burlington Northern Santa Fe Corp. (NYSE: BNI) – a favorite of Warren Buffett – are all up a about 30% since early March.

SmartMoney.com associate editor Jack Hough says now is a good time to pick up Buffett-favored stocks on the cheap.

Warren Buffett is shopping for railroad stocks again. The ‘Oracle of Omaha’ increased his stake in Burlington Northern (NYSE:BNI) to almost 20% last month. Fuel efficiency and road congestion are two key factors supporting a bullish outlook for the railroad industry, says Jason Simpkins.

Even the most savvy investors have been stung by this year’s equity meltdown. Warren Buffett’s investment vehicle, Berkshire Hathaway (NYSE:BRK.A, BRK.B), is down 24% from its peak in December 2007.

Alexander Green says BRK’s drop creates an outstanding buying opportunity. Buffett has an unrivaled track record as an investor. He has always followed a disciplined value-based strategy. And this still holds true today.

BRK.B shares are trading at $3,860, down from a 52-week high of $5,059. This makes them a no-brainer buy right now.

Shares in this transport sector have been hit hard, following the recent downgrading of the trucking sector by a Wachovia Capital Markets analyst.

But contrarian investors should be wary of such ‘expert’ opinion. Floyd Brown in Investment U says: “Trucking is an integral part of our national goods transportation network. And because it’s tied so closely to our economy, it will also be one of the first sectors to see a turnaround.“

Floyd says savvy investors should follow Warren Buffett into undervalued transport stocks now…

With the stock market in turmoil, it’s a good time to check in on what Warren Buffett is doing with his portfolio. Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A, BRK.B) has struggled in the first half of the year. Money Morning’s Jason Simpkins says $3.5 billion of Berkshire’s recent $4-billion shopping spree is still unaccounted for…

I hope you enjoyed the Memorial Day weekend – and that your wallet still has a pulse if you did any traveling.