Railways. Seriously. Some Investors, also Berkshire Hathaway, engaged seriously in the new hot transportation alternative: Union Pacific (UNG), Burlington Northern Santa Fe (BNI), Norfolk Southern Corp (NSC). Does it make sense? Well, for the Buffet evangelists sure it does, but what arguments are supporting an engagement? Fuelled by increasing oil prices (in the last five month the price for oil increased by 37%) this investment idea could turn out to be great. Accordingly TCI (Hedge Fund in London) Partner Snehal Amin (they have got no website) recently said in an interview that he expects income und stock performance of the railway companies to double in the next 5 years. Not only Mr. Buffet is convinced, also Mr. Icahn, how holds CSX (CSX) worth USD 122 Mil. If not the market will do, the Hedge Funds will utilize their activism strategy to come out of the investments with huge profits. However, for those of you who are thinking about investing: the shares of almost all railway companies have performed well in the last couple of month. Union Pacific performed 24% in the last five month. A correction of prices is always possible. Full Disclosure: I do not own any stocks or options of the mentioned companies.
Category Archives: NSC