Jason Rines (iThinkBig)

Buffett's Big Rail Buy: What It Means for Berkshire Shareholders

The star power is not what many of us are analyzing here. Most of us seem to be taking a rational view of the USA's short and medium term future.


On Nov 04 02:36 PM bottoms-up wrote:

> I noticed that I got of thumbs down for coming down on the untouchable
> Sir Buffett of Omaha.
>
> I guess all of you can come down on rating agencies that may take
> his AAA rating away:
>
> www.bloomberg.com/apps...;sid=aTI6ak3w6s0Y
>
>
> Remember, sacred cows make the best burger, and I don't mean Omaha
> Steaks.. In business, if you follow anyone or anything as though
> they are a deity or rock star, you'll get what's coming to you.

Buffett's Big Rail Buy: What It Means for Berkshire Shareholders

Perhaps two can play the Ayn Rand game. Someone always needs to be John Gault. I don't think one could make up what is occurring in history right now. I am long America but short current US government. I do not believe WB would be in a position to state the same publically on the second line of that sentence but I would just be speculating.


On Nov 03 02:15 PM Socialism cannot compete! wrote:

> Only problem with this "energy play" -- the coal pipeline -- is that
> this Admarxistration does *not* like coal. Should be buying nuclear
> or something else instead. Unless...Buffett is doing this to create
> anti-Cap & Tax leverage against the neo-Coms??? Now *that* would
> be interesting!!! Last I checked, Warren was pretty liberal. Wonder
> if he's changing stripes...perhaps his capitalist self has woken
> to the realization that the liberals and their socialist policies
> are anti-freedom and anti-capitalism??? Things are getting very interesting
> indeed.

Buffett's Big Rail Buy: What It Means for Berkshire Shareholders

HA! You beat me to the punchline John. The dollar is being devalued. Imports like oil are going to become less economical. If the USA begins a real recovery, it is highly unlikely to be before 2013 and oil will continue to rise in-between meaning trickle down inflation into everything and making rail transport that much more important. Since early 2008 I keep referring to this year for myriads of reasons for the next sustainable bull, try a search here at SA under my screen name but the net out is a tepid but sustainable bull formation that year.

Let's say the bad becomes worse based on Washington policies. People will still need to eat meaning rail assets become extremely valuable.

WB loses if the US government decides to throw the industrialists to the wolves as other Fascist or Communist governments did in the past. In that extreme case, we ALL lose. But if I am WB I sleep well at night on this deal.


On Nov 03 01:27 PM John Lounsbury wrote:

> I think Buffet is making an energy play. He has been more and more
> an energy investor in recent years. Remember his 300% plus gain over
> a couple of years with Petro China? Utilities and pipelines are part
> of the energy investment picture. BNI is part of the same strategy,
> in this case he is buying a coal "pipeline".
>
> I bought BNI in early 2005 in the 40's and got stopped out within
> a few months for a gain of about 12%. This is one case where stop
> loss risk control proved counter productive.

Should You Follow Warren Buffett’s Latest Moves?

Just a guess as to WB's thinking on J&J and Proctor and Gamble. These companies are mixed Consumer Healthcare products and have greater exposure to consumers pulling spending back then say, a straight Pharmaceutical company selling essential Rx treatments. The writing is on the wall, we are in depression.