What is warren buffet investing in?

2nd Dec 2009 by Gary

The latest acquisition by Warren Buffett is Burlington Northern Santa Fe railroad, is gives great insight into where Warren Buffett sees the economy moving towards: high fuel costs. First, this is a great buy because very few companies in the world would be able to duplicate the costs related to the infrastructure Burlington Northern has in order to match them. That's a huge competitive advantage. Another thing to take away from the acquisition is Buffett is betting on the continual growth of emerging markets around the world, which will require transportation within America, such as grains to ports, along with other commodities and natural resources. Unless something unusual happens, oil and fuel costs will eventually rise again, and that's when investment in Burlington Northern will really pay off, as it'll be more efficient than trucking companies, which will have to deal with ways to cut cost which are already built into Burlington.

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