Tuesday 22 May 2007
Railroads bask in Buffett's flavor
By JOSH FUNK, AP Business Writer
OMAHA, Neb. - Freight railroads and their investors can feel confident no new railroads will try to create a competing network — the cost is too high.
That enduring competitive advantage, combined with strong demand from shippers, is part of why billionaire Warren Buffett ‘s company, Berkshire Hathaway Inc., invested in three freight railroads. But investors who are thinking about following Buffett will have to determine whether strong business fundamentals or Buffett excitement drove the recent rise in rail stocks.
Continued here
OMAHA, Neb. - Freight railroads and their investors can feel confident no new railroads will try to create a competing network — the cost is too high.
That enduring competitive advantage, combined with strong demand from shippers, is part of why billionaire Warren Buffett ‘s company, Berkshire Hathaway Inc., invested in three freight railroads. But investors who are thinking about following Buffett will have to determine whether strong business fundamentals or Buffett excitement drove the recent rise in rail stocks.
Continued here
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