Canadian National: This Buffett-Esque Stock Is A Strong Buy
Summary
- Canadian National shares are down nearly 25% amid tariff fears and a weak North American economy, presenting a buying opportunity reminiscent of Warren Buffett's 2009 railroad investment.
- CNI boasts a diversified revenue stream, with intermodal, petroleum, chemicals, and grain making up 62% of its 2024 revenue, minimizing tariff impact.
- The company has an irreplaceable network spanning nearly 19,000 route miles, connecting Canada to the U.S., and accessing seven major ports.
- Despite short-term concerns, CN Rail's history of earnings growth, share repurchases, and strong historical dividend yield makes it a compelling long-term investment.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of CNR:CA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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