Buffett Railroad Plays

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On April 8, 2007,Warren Buffett's Berkshire Hathaway (BRKA, BRKB), disclosed that it has a 109% stake in Burlington Northern Santa Fe Railroad (BNI). On May 16, 2007 - Warren Buffett revealed that Berkshire owns 1.6% of Norfolk Southern. It's not just Buffett. Bill Gates investment company, Cascade Investments, holds a substantial stake in CNI.

According to Jim Cramer, rails are back on track. Rail transport is cheaper than transport by truck. Capital investment has already been made. Other rails have taken steps to boost their stock price. On May 9, CSX raised their stock buyback by $1 billion. Also, Carl Icahn disclosed a major investment in CSX, on May 16, 2007.

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