U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 11-03-2009, 08:28 AM
 
20,194 posts, read 21,551,095 times
Reputation: 9234

Advertisements

Honestly, I don't see a very high return for buying an old railway system... Am I missing something, what does Buffett think is going to happen? Anyone else have better insight? I wouldn't buy any Berkshire shares, they are way too expensive and I don't have that much money... hahaha...
Rate this post positively Reply With Quote Quick reply to this message

 
Old 11-03-2009, 09:30 AM
 
Location: Planet Eaarth
8,955 posts, read 18,752,456 times
Reputation: 7193
Well....hahahaha...rail is the wave of the future for transporting both goods and people. Hi speed rail will have to come to America and more and more goods will move off the decaying interstates to rail.

Warren Buffet remembers the days before the interstates and knows what rail can do cheaper. Crazy like a fox he is..............
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-03-2009, 09:40 AM
 
22,770 posts, read 27,784,836 times
Reputation: 14617
He probably sees value for the price. I would imagine those rail companies have a ton of illiquid assets.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-03-2009, 09:47 AM
 
Location: North Beach, MD on the Chesapeake
36,557 posts, read 47,169,410 times
Reputation: 47495
With the continuing fuel crunch railraoads are an efficient method of freight movement over long distances. Since deregulation in the late 70's and early 80's they've been able to shed their non-profitable routes. BN is also recognized as one of the better managed lines with updated equipment and good routes.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-03-2009, 10:30 AM
 
20,194 posts, read 21,551,095 times
Reputation: 9234
I have ridden on the rails before and they are NOT cheaper or efficient (if you measure efficiency by time)... I have looked for the past 5 years and the cost of going on passenger rail versus by plane is about the same costs... But plane is way, way faster (I travel long distances most of the time)... unless he is looking for developing new rail inside cities, etc, I don't see why rail is so "good"... yes, I do see that transportation of goods is cheaper on rail but is he looking at massive transport of goods in the future?? What goods and why? Maybe he is looking at Europe's carbon credit system and saw that rail did very well and thinks it will be replicated over here when they pass the carbon credit system?? What does he know?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-03-2009, 10:38 AM
 
Location: Oak Park, IL
5,522 posts, read 12,782,760 times
Reputation: 3866
Quote:
Originally Posted by evilnewbie View Post
I have ridden on the rails before and they are NOT cheaper or efficient (if you measure efficiency by time)... I have looked for the past 5 years and the cost of going on passenger rail versus by plane is about the same costs... But plane is way, way faster (I travel long distances most of the time)... unless he is looking for developing new rail inside cities, etc, I don't see why rail is so "good"... yes, I do see that transportation of goods is cheaper on rail but is he looking at massive transport of goods in the future?? What goods and why? Maybe he is looking at Europe's carbon credit system and saw that rail did very well and thinks it will be replicated over here when they pass the carbon credit system?? What does he know?

Hopefully, you realize that there's a big difference between Amtrak (passenger rail) and freight rail companies. In the US rail carries more freight than the trucking industry, and as fuel prices increase that lead will only increase.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-03-2009, 10:58 AM
 
Location: US
1,189 posts, read 3,727,300 times
Reputation: 826
Quote:
Originally Posted by oakparkdude View Post
Hopefully, you realize that there's a big difference between Amtrak (passenger rail) and freight rail companies. In the US rail carries more freight than the trucking industry, and as fuel prices increase that lead will only increase.
And the freight guys own the road. Amtrak has to "pull over" for all freight-- they have the right of way. That takes a good chunk of time.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-03-2009, 11:04 AM
 
20,194 posts, read 21,551,095 times
Reputation: 9234
Quote:
Originally Posted by oakparkdude View Post
Hopefully, you realize that there's a big difference between Amtrak (passenger rail) and freight rail companies. In the US rail carries more freight than the trucking industry, and as fuel prices increase that lead will only increase.
Yes, I do... someone mentioned it above and I had to rebutt it... Perhaps Buffett is thinking about expanding Burlington to do passenger rails in the future? I really don't know what his reasoning that rail will do so well in the future... I do know that rail carries more freight BUT I don't see more freight increasing in the near or long future... I suppose Buffett is hedging against oil prices but that wouldn't be a "wise" bet unless he knew something and I don't know what he knows or his reasoning... I expect teamsters and their unions being very strong about not losing to rail, so I still don't know what is up with Buffett or whoever "really" runs Berkshire... I am thinking Buffett is old and just poised as a talking head while the brains work in closed doors and hidden from anyone's knowledge...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-03-2009, 11:18 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
27,078 posts, read 45,168,934 times
Reputation: 31273
Obviously Buffett is making a 'value-play' (Tho he has been wrong a few times in the past).

I would guess he sees a current bargain with the potential for future growth and profitability. I would think speculation of high future energy prices are his primary driver. I highly doubt he has any visions of transporting people in the future, or a carbon credit strategy (let's hope that never happens).
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-03-2009, 11:19 AM
 
Location: Oak Park, IL
5,522 posts, read 12,782,760 times
Reputation: 3866
Quote:
Originally Posted by evilnewbie View Post
Yes, I do... someone mentioned it above and I had to rebutt it... Perhaps Buffett is thinking about expanding Burlington to do passenger rails in the future? I really don't know what his reasoning that rail will do so well in the future... I do know that rail carries more freight BUT I don't see more freight increasing in the near or long future... I suppose Buffett is hedging against oil prices but that wouldn't be a "wise" bet unless he knew something and I don't know what he knows or his reasoning... I expect teamsters and their unions being very strong about not losing to rail, so I still don't know what is up with Buffett or whoever "really" runs Berkshire... I am thinking Buffett is old and just poised as a talking head while the brains work in closed doors and hidden from anyone's knowledge...
Why wouldn't freight traffic increase in the future? Are you betting against future prosperity and increased standard of living? We transport a lot more "stuff" now than we did 50 years ago, and we'll likely transport a lot more "stuff" fifty years from now, and most of it will probably be by rail.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Similar Threads

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top