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| bayeauxguy |
 Posted: Sat Sep 08, 2007 8:37 am Post subject: Warren Buffet |
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Investing Sr. Associate
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Man, Warren Buffet is snapping a lot of rail stocks.
Seems like a brilliant move to me but then again I'm very inexperienced at all this. Whats the consensus here? |
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| StatTrader |
| Posted: Sun Sep 09, 2007 6:45 am Post subject: |
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Member Of The Month! April
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| I think it is called "Peak Oil" |
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| Im Not Warren Buffett |
| Posted: Sun Sep 09, 2007 8:05 am Post subject: |
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CFO
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| I think Warren's last name has two "t"s |
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| bayeauxguy |
| Posted: Sun Sep 09, 2007 8:56 am Post subject: |
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Investing Sr. Associate
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| Dave Rathbun |
| Posted: Mon Sep 10, 2007 9:45 am Post subject: |
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CFO
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One thing Buffett has been good at in the past is seeing value where others don't. I won't try to value rail stocks; I'm not interested in that area.  However, there are some things that make rail stocks interesting. First of all, many rail companies own the land their tracks are on, or at least the right-of-way. If you're not familiar with Qwest you should look at them... they are a telecom company now, but they started (I believe) as a rail company. Or there is some relationship there, because Qwest was running fiber down their railway lines. That was back before the "bubble" so that fiber is probably still sitting there, unused.
With many things related to technology, the demand and supply are hard to match. Back then folks thought that bandwidth demands would go through the roof. They didn't. Now with youtube and other video sharing services, not to mention things like iTunes and amazon "unbox" video downloads, bandwidth demains are, in fact, going up.
So maybe this is good timing on Buffett's part.
Which rail stocks is he buying, do you know? |
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| Im Not Warren Buffett |
| Posted: Mon Sep 10, 2007 9:59 am Post subject: |
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CFO
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| Dave Rathbun wrote: | | Which rail stocks is he buying, do you know? |
Buffett has been buying three that I know of, Burlington Northern (BNI), Union Pacific (UNP), and Norfolk Southern (NSC).
The "why" is the most interesting and difficult part to answer. Traditionally, Buffett has been better than everyone else at predicting long-term economic and demographic shifts... in addition to remaining cool enough to purchase things when everyone else is panicking.
So... potential reasons, in short:
1. Improving economic moats
2. Favorable shift in transportation fundamentals toward railcar
3. Rail lines as land banks
Discuss amongst yourselves... |
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| FiercePowahs |
| Posted: Thu Sep 13, 2007 8:56 am Post subject: |
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| How do you find out what he's buying into? |
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| Im Not Warren Buffett |
| Posted: Thu Sep 13, 2007 9:03 am Post subject: |
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CFO
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| FiercePowahs wrote: | | How do you find out what he's buying into? |
An interesting techology called a telephone.  |
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