Brad Ferris

Buffett's Buying More Burlington; Should You?

While I don't think every investor should RUSH into a stock because Buffett is buying into it - I do think that rails are a very compelling sector to own at this time. As energy prices remain at historically high levels the cost/benefit for goods to be transported via rail increases significantly.

Now most/many of them are at rich valuations compared to how the rest of the market has done and there is some economic sensitivity with the sector - but for a long-term investor who wants to be diversified you can make the case that they're a solid investment with very stable dividend yields.