Texas_Technoman

Another Crisis Looms Right Around the Corner

I'm not ready to panic, yet. We could afford healthcare for all if we just got our butts and $$ out of Iraq. But there is an elephant in the room that no one is talking about that will make the healthcare bill look like chump change.....a failing interstate highway system that will eventually put this country in gridlock. Invest in railroads....they at least don't have to depend on Washington to keep their infrastructure maintained.

Intrinsic Value and Warren Buffett's BNSF Purchase

BNI property holding are primarily right-of-way on either side of their tracks....or rail yards in metropolitan areas...probably not sitting on oil or gas reserves. Most of the other real estate was taken in the 80's when the former BN holding company spun off the rail company and kept all the other assets (except for the $3.5b in debt it let the RR keep).
With that said, the rail right-of-way is where most of your major telecomm companies run their fiber...and it does have potential for other similar business models (pipelines, electric lines, etc.)...but the value of all that is not worth $40+b.


On Nov 06 02:59 PM Dzog wrote:

> This is my first commenting here - please consider this should the
> following may not be so very clear.
>
> I haven't read anything related to the properties which BNI own
>
> - Do these properties exist in areas that may be worth accessing
> (for precious metals/fossil fuels) and other hard assets that will
> become of value (in the event of hyper inflation or devaluation of
> the USD)?
>
> As I understand it, Warren is most often a VERY long term guy - such
> being the case, it may be something to consider.
>
> When I've heard that the Chinese (also VERY long term oriented) have
> invested many of their dollars in Brazil, the only country that has
> had major finds of proven oil reserves since 2002 (Norway too – although
> currently under dispute).
>
> So, my point is I think all these valuation models mentioned above
> may be missing this dimension and Warren may be completely on top
> of it.

How to Play Buffett's Big Bet on America

I think what WB is betting on is: A US highway infrastructure that is crumbling (you think the cost to "fix" healthcare is high....) while investments are targeted more often towards expansion (priortized by politicians) than fixing what is already there....play that out for 10 years and you have a mess. The railroads continue to expand, and maintain. They prioritize their spending using science (predictive maintenance) rather than politics. As this plays out over the years railroads eventually become the most economical and dependable way to move freight across the county...the interstate system will be a logjam.

Buffett's Burlington Buy Is Really a Bet on China

BNI is a much stronger player in the intermodal (trailer/container on flat car) sector than UNP. In fact, up until the current slowdown, BNI's intermodal traffic has grown more than all the other North American RR's combined. UNP is stronger in the Industrial Products sector (o/t coal), which feeds an industrial base in the US....that is shrinking. The future is in containerized freight (both import/export) and domestic...rails do the long haul, motor carriers the pick up and delivery....it's all about Intermodal!

The Economic View from the Railroads

Lanigan is CMO at BNSF (Marketing)...and NS coal traffic may be down due to eastern utilities switching from eastern soft coal to western hard coal (less polluting)...so NS may be not recover some of this traffic.

Google Should Make Apple Beg for Maps Navigation

I agree with AnonymousCFA, difficult to navigate with a phone unless you are walking....or a passenger.

Also, I wouldn't write off Garmin...they make serious navigation devices specifically for: Autos, Motorcycles, Marine, Hiking, etc...much broader customer base than TomTom...and most are applications that would make a phone impractical.

AIG: Geithner's Outraged? He Should Be Embarrassed

It would be interesting to know what there bonus payout terms are. At my company the bonus's are tied directly to business performance (EPS, etc.). Seems like the financial industry's only requirement is a pulse.

Burlington Northern Santa Fe: All Aboard One of the Best Railroads

And they can haul a ton of freight, 450 miles, on one gallon of diesel....it's the new "green" freight transportation solution.