E Nuff Sed

Cramer's Mad Money - The Ultimate Stealth Rolling Bull Market (11/10/09)

Actually Cramer's advise is sound. JNJ is dead money for the next 3 years as it will struggle to maintain earnings due to patent expiries and lack of near term pipeline in pharma and medical devices. Their consumer group is doing well but cannot makeup for overall weakness.

On Nov 11 11:10 AM Gravity404 wrote:

> Cramer says he doesn't like JNJ. That means it's time to BUY, BUY,> BUY it.
>
> Everyone should have JNJ in their portfolios and $60 is a excellent
> entry point for long term buyers.

Buffett's Burlington Buy Is Really a Bet on China

Brian, you see a chinese under every bed. The simplest explanation is " a bet of the recovering economy" with a wide moat company which can absorb and utilize the massive amount of cash being thrown off by BRK.
BNI's ROE for the last 5 years has been between 15 to 20% while BRK's ROE has been languishing at around 5 to 10%.

Where else can you get this kind of return but in your very own RR?

Intrinsic Value and Warren Buffett's BNSF Purchase

The key asset Buffet looks for is "a wide moat". Railroads have the widest moat there is. Second, Warren is also looking to leverage - not financial leverage - but economic leverage.

Ask the question - which companies will leverage the improving economy the most- answer: companies which own capital. Like railroads, steel plants, heavy industries etc. This is as the man himself said - an all in bet on the "recovering" American economy and a $44 billion dollar snub to the bears.

Riding the Rails: Why BNI Was Berkshire's Best Bet - And Vintage Buffett

Chuck, You did not mention Canadian National Railways. It generates even higher margins and return on equity than BNI. CNI is very strong in agriculture and its network covers the vast Canadian prairie's. It has now access to the Alberta Tar Sands and the uncrowded Prince Rupert port in northern BC from which it can serve the east and midwest via direct rail links.
As the economy recovers it will have tremendous leverage and pricing power and stock price in my opinion can double in 3 years.