Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: benbuffett who wrote (56373)	12/12/2015 6:04:41 PM
From: Spekulatius	Respond to of 78748

BNSF is already too large, I don't think they they can take over a major US railroad. My concern with the railroads is that there is no true organic growth, it's all price increases at this point. With lower diesel prices, I think the truckers will become more competitive (moving by truck is faster than RR too), so I think they may be done raising prices for now. Then we have coal,which is weak and crude is going to be moved by pipelines eventually where rail cannot be competitive in the long run. Even now, the RR are still valued as a secular growth play, which I think is questionable. I think I would rather look at some industrial stocks right now.

To: benbuffett who wrote (56373)	12/14/2015 12:27:17 AM
From: Jurgis Bekepuris	Respond to of 78748

Rails are somewhat attractive. Prices are not supercheap, but they dropped quite a bit. I'll probably just be satisfied with BNSF inside BRK that I already hold. Might buy others in the future if they continue dropping as Spekulatius expects. Keep posting if prices drop more. :)