warren buffett railroad holdings

And exactly why he made this move will stun you.

They cost billions to maintain. Let's conquer your financial goals together...faster. (TMFMorris) That compares quite favorably to the S&P 500, which is up 114%. The bottom line is that railroads are solid businesses with Union Pacific and Canadian National Railway are two of the most interesting plays in this space. Buffett loves cheap stocks, but he has also said, the price is simply "what you pay. Stock Advisor launched in February of 2002. 1 Railroad Stock to Buy: Union Pacific (NYSE: UNP) Union Pacific (NYSE: UNP) is a lot like Warren Buffett’s Burlington Northern. When traffic travels by rail, society benefits.Buffett didn't make the investment simply because the price was attractive. There hasn’t been a major takeover of a North American railroad since Warren Buffett’s Berkshire Hathaway Inc. struck a $36 billion deal for Burlington Northern Santa Fe in 2009. The company has been paying a dividend for 17 years.Consider this: On a total return basis for the last five years, UNP is up 320% and CNI has gained 195%. Has he lost his touch?The answer, of course, to both of these questions, is no. No. Ask BNSF touts last year it made "a record $4 billion" in capital investments and it expects to make another $5 billion this year.You'd be hard-pressed to say $9 billion spent over two years would describe a business as having "virtually no major capital requirements. They are the only two major plays in the West and both have seen a nice boost from the oil shale boom. Questions about their future abound.Yet in 2009 Warren Buffett decided to make an "all-in wager on the economic future of the United States," as And in this major move we can see one critical truth that is often undiscussed when we consider where Buffett puts his money.It's far better to have an ever-increasing stream of earnings with virtually no major capital requirements. That's three times more fuel-efficient than trucking is, which means our railroad owns an important advantage in operating costs. However, we know of one group of investors collecting Since then, Buffett’s railroad stock investment is paying off nicely. Detailed … View the current portfolio and top holdings for Warren Buffett. Investing Basics Warren Buffett is arguably the greatest value investor the world has ever seen. Union Pacific’s profit margin is near 22% and Canadian National Railway’s is at 26% over the last 12 months.As well, their returns on assets, returns on equity and returns on invested capital are all superior to the other rail companies. Warren Buffetts Berkshire Hathaway said its second-quarter earnings surged 86 per cent, as a rebound in the stockmarket offset a profit decline in the companys operations and a … Its dividend yield is 1.4% and that’s just a 36% payout ratio. If Warren Buffett didn’t already own Burlington Northern, I bet he’d be taking a close look at these two railroad stocks. After a few stints in banking and corporate finance, Patrick joined the Motley Fool as a writer covering the financial sector. For example, Union Pacific has a return on invested capital of 17.1% and Canadian National Railway’s is 15.7%; meanwhile, With long-term debt-to-equity ratios of less than 60%, the Union Pacific and Canadian National Railway balance sheets are, again, some of the best in the business. Meanwhile, Canadian National Railway pays out a $1.25 annual dividend. Retirement Back in August, I called Union Pacific the

Nahezu sein gesamtes Vermögen ist in dem von ihm aufgebauten und geleiteten Investment-Unternehmen Berkshire Hathaway angelegt, dessen größter Aktionär er selbst ist. This allows many of them to enjoy double-digit profit margins. Much of the economy is driven by consumer spending. Cumulative Growth of a $10,000 Investment in Stock AdvisorThe Truth Behind Warren Buffett's Billion-Dollar Railroad Bet @themotleyfool #stocks $RSHCQ $BRK.A $BRK.B Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.Railroads break down. Concurrently, our country gains because of reduced greenhouse emissions and a much smaller need for imported oil. Stock Market And its net earnings growth is even more impressive, rising by nearly 30% to $3.8 billion.But it isn't just the bottom and topline results which are eye-opening. August 1930 in Omaha, Nebraska) ist ein US-amerikanischer Großinvestor, Unternehmer und Mäzen. His investment holding company, Berkshire Hathaway (NYSE: BRK.A), has averaged a compounded annual gain of 19.8% since 1964. Why are these the top two railroad stocks to buy today?The average yield of the Dow has sunk to 2.1%.

Warren Buffett already has his railroad stock, and you should too. Personal Finance