When everyone is looking up at the sky, Buffet has looked through the rails.
The sky is dainty and romantic.
At times, the rails are also chivalrous.
Buffet ,got his board's ratification in 15 minutes to buy Burlington Rail.
Berkshire Hathaway will pay $ 26 billion to buy out Burlington Rail.
The cyclical industry has shown merits in the transportation of goods cheaply.
This low profile industry is plodding on its own, without much fanfare, with investors not showing interest .
The long term viabilty has held Buffet's attention.
AS he puts it "I love these bets", , his entry appears a little risky as most rail companies P/E ratios are in mid teens.
This deal marks a bet on the future of coal.Buffet is getting into the coal market ,in an indirect way,but doing it cheaply.With Berkshire's money,BNSF would be able to invest in infrastructure.BSNF ,is an outperformer, way ahead in revenue than its close competitor Union Pacific Corp.
Buffet is making a valid bet on the future of U.S. economy.
The puf puff of the rails , transporting cargo, may assume a derogatory perception, But Buffet finds diamnod beneath this black soot.
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When the world is going haywire over gold, Buffet settles in for coal
Is he an oracle?
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