UNP - Ranking BNSF Vs Peers: Why Berkshire's Bet On Railroads Continues To Pay Off

2024-03-15 11:28:19 ET

Summary

• All 6 Class 1 Railroads have now released their 2023 annual reports.
• In this article, we go over BNSF's results to check if Buffett's investment continues to pay off.
• At the same time, I give a full ranking of the 6 railroads according to the assessing metrics Buffett himself uses.

Introduction

"Rail is essential to America’s economic future". This is what Warren Buffett wrote to Berkshire's shareholders in his last shareholder letter . And here we are, ready to understand why he thinks so.

Since all North American Class 1 railroads have released their FY 2023 annual reports, we are in the best position to go over the largest Class 1 railroad: Burlington Northern Santa Fe, and compare it to its peers. And, in case you have never heard of it, you have probably heard about its owner: Warren Buffett through his Berkshire Hathaway ( BRK.A , BRK.B ). This is why, in Berkshire's reports, BNSF always finds a spot....

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