The Wizard Bought A Railroad by johnH56

posted about 1 month ago, updated 16 minutes later

The big business news this morning. Warren Buffet, the Wizard of Omaha, has agreed to buy the Burlington Northern Railroad for 44 billion dollars.

It is an interesting bet on the future of America. A train moves a ton of freight over 400 miles on a gallon of diesel. How is that possible? But apparently it is so. Railroads are the most efficient and ecologically best way to move goods.

So the wizard is betting on rails over trucks. It makes you think.

Yesterday Ford Motors was one of the few car companies to announce a profit. Here in Portland, mass transit has captured a large part of the commuter population.

Cars and trucks give us freedom to go from any one point to another. A train is trapped by its rails. Cars gave us the burbs. The rails gave us cities.

The Wizard is betting on cities. Think about what that means.

Or it could be Buffet is just going back to his days as a kid - and getting a new Lionel train set for Christmas. Your own railroad- such a thing. Amazing.

What's the song from the Great Depression- has the lines-

Once I had a railroad. Brother can you spare a dime.

Backwards to the future or something. But when it is one of the country's great investors it is noteworthy.

posted by SherriAnne

Perhaps the time has come again to refurbish our rail system- both freight and passenger. A lot of my family worked for the NP, and my mom worked for Burlington Northern for a while. I've traveled a lot on the train- way before the advent of Amtrak. The huge train stations, the tunnels labeled 'to trains', the power of the engines at idle, all held such a fascination for me.

Trains are a large part of American culture, and played a significant part in the expansion and settling of this country. As Mr. Buffet seems to hold some modicum of skill in financial matters, he must see some value in purchasing Burlington.

I would like to see rail travel on the rise again. It might do great things; less congested freeways, less road rage, etc. Fancy RV's are nice, but nothing beats a first class Pullman sleeping suite- talk about ingenuity of design- not an inch of wasted space. I get dibs on the top bunk!

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posted by ChelseaLad

I saw a discussion here in the Southern Ohio/Northern Kentucky area about installing a rail system. The remnants of the Cincinnati subway are still in place, although it never carried a single passenger. The argument was a rail system is a commitment, while the use of buses is a temporary fix. Having traveled a lot, most countries depend heavily on rail. In Japan, we crossed hundred of miles in an hour or two as the bullet trains sped across rice fields and small towns. The same was true in France where the TGV (Tres grand vitesse or very great speed) trains hit over 200 mph. Here in Florida you see one car of Amtrack going about 40 mph with a handful of passengers. I think Warren Buffet knows something and his purchase of a lion's share of GE stock may pay off as they are the major manufacturers of locomotives in America. They also have a ton of windmills they would sell.

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posted by CaliforniaBlonde

It certainly is hopeful news. I wish Mr. Buffett--and all the rest of us--good times and good fortune in the future of his railroad.

Cali

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posted by gardenlady110

I wish him well. In my town, we saw a company come in 13 years ago and then have to close it's doors this past April because of the economic downturn.

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posted by richle

The Wizard knows that in a few years ALL interstate freight will be carried by rail. The only use for trucks will be from the central rail yard to the local distribution sites. Fortunately for Berkshire Hathaway Mr Buffett has the Oriental view of looking at the next generation rather than the Western view of looking at the current quarter. How much money does he have today? He and his bridge patner have done pretty well.

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posted by Mok1953

Hey, that's the train that runs down this valley, and I love it. I think Hathaway might have finally decided Kunstler and the Peak Oil boys are right, and got on board! All aboard! This ain't no Chatanooga Choo-Choo, either. I've been thinking about the implications as well. Interesting insight, "betting on the cities". Thanks for that.

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The Wizard Bought A Railroad

posted about 1 month ago, updated 16 minutes later

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johnH56