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To: Bearcatbob who wrote (9601)	2/17/2012 3:15:00 PM
From: d[-_-]b	Read Replies (1) \| Respond to of 85487

cnbc.com “Railroads have become more reliable," says Keith Schoonmaker, a senior equity analyst at Morningstar. "And they’re better inventory managers.” Warren Buffett, among others, saw that train coming. In late 2009, Buffett's Berkshire Hathaway [BRK'A 119300.00 960.00 (+0.81%) ] culminated its move into railroad stocks by acquiring Burlington Northern-Santa Fe Railway for $34 billion. What he saw were strong fundamentals: lush cash flow, high barriers to entry and predictable growth. Railroad revenue growth should exceed that of U.S. GDP for the next three to six years, says Arthur Hatfield, a transportation analyst at Morgan Keegan. “We like the industry as a whole,” he says. “All management teams are doing a good job.”

To: Bearcatbob who wrote (9601)	2/17/2012 3:20:50 PM
From: d[-_-]b	Respond to of 85487

Believe whatever you like. Ever heard the expression "follow the money"? businessweek.com Buffett Railroad Boosts Capital Plan to $3.9 Billion in Coal Bet February 06, 2012, 5:04 AM EST By Natalie Doss and Noah Buhayar Feb. 1 (Bloomberg) -- Burlington Northern Santa Fe, the railroad controlled by Warren Buffett, plans $3.9 billion in capital spending this year, an increase of 11 percent from 2011, as the company boosts capacity for coal shipments. The 2012 proposal includes $2.1 billion on the core network and $1.1 billion on locomotive, freight car and equipment acquisitions, the company said in a statement today. The Fort Worth, Texas-based railroad is also spending $300 million this year on a U.S. rail-safety mandate. Buffett’s Berkshire Hathaway Inc. is increasing spending at the second-biggest U.S. rail operator after he made an “all-in wager” on the U.S. economy when he bought Burlington in early 2010 for about $26.5 billion. The largest U.S. freight railroads may boost capital expenditures to a record $13 billion in 2012 as their revenue rises amid gains in freight traffic, the Association of American Railroads said Jan. 30. The investment will “ensure our infrastructure remains strong and improve the efficiency of our operations,” said Matthew Rose, CEO of the railroad, in the statement. The railroad’s plan calls for $400 million in terminal, intermodal-expansion and efficiency projects, which will focus on coal routes. The rail serves mines in the Western U.S., including Wyoming’s Powder River Basin, which holds the largest and cheapest U.S. reserves of the power-plant fuel. Burlington Northern is also benefitting as oil drilling in the northern-U.S. Bakken region outpaces pipeline growth, boosting petroleum shipments by rail. Intermodal shipments, which can move by sea, rail and highway, are also rising at the company as rising fuel prices prompt truckers to partner with railroads to move containers over long distances.