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Buffett's BNSF railroad hikes capital plan 25% to $5B as it hauls more oil

  • Berkshire Hathaway (BRK.A, BRK.B) says it plans to spend a record $5B at its BNSF railroad this year, a ~25% increase from the target set a year ago, to buy locomotives and maintain track.
  • Part of the 2014 investment will go toward handling more crude oil, which helped drive an 11% volume increase in industrial products volumes last year; intermodal shipments, which can move by a combination of rail, road and sea, rose 8%.
  • Earlier: Berkshire an underperformer so far this year.
Comments (2)
  • bibol11
    , contributor
    Comments (55) | Send Message
     
    Buffet made a good buy. When I owned the stock and Buffet tried to buy it. I voted against it but turned the buyout into BERK.B stock. The people who were rewarded were the executives not the stockholders. After it was bought its profits were way up the next year. Because they did not try to hide the profits to avoid the unions demands.
    4 Feb, 08:55 PM Reply Like
  • sa_investor
    , contributor
    Comments (2) | Send Message
     
    If rationality prevails and some pipelines get approved, it almost has to be bad for BNSF, since their safety record is suffering and their costs are higher. Of course Buffet has a lot of political influence to head off pipeline approvals. I would not bet on this either way, since I do not have sufficient insight to judge Buffet's political influence vs rational policy vs environmental activist opposition to pipelines.
    20 Mar, 03:49 AM Reply Like
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