New York (dpa) – Legendary US investor Warren Buffett, who last week sealed a deal to become full owner of one of the country's biggest transcontinental railroads, has started divesting his holdings to finance the new project.

Buffett's holding company Berkshire Hathaway late Tuesday informed the Securities Exchange Commission that he was reducing his stake in a number of firms including ConocoPhillipps, Johnson & Johnson and Procter & Gamble.

His portfolio was valued at about 57.9 billion dollars in December, Bloomberg financial news service reported.

Buffett on Friday agreed to buy Burlington Northern Santa Fe Corp. in a 26.3-billion-dollar deal. The Fort Worth, Texas-based railroad is the nation's largest by revenue, according to the Wall Street Journal.