Warren Buffett Takes Ownership of Mainline Vancouver Railway

Warren Buffett likes trains. No, he really likes trains. The World's Greatest Living Investor just bought out Burlington Northern Santa Fe with stock from his company Berkshire Hathaway in the biggest deal of his life. The deal cost $44 billion. Burlington Northern Santa Fe owns the 50km track, used mainly by freight but also the Amtrak passenger rail service, between Vancouver and the States.

"Our country's future prosperity depends on its having an efficient and well-maintained rail system," said Buffett. "Conversely, America must grow and prosper for railroads to do well."

He called it "an all-in wager on the economic future of the United States."

Rail freight is much less carbon intensive than road freight so should be cushioned against any economic slowdown.

Apparently, Buffett is also betting on so-called "clean coal" power stations which are expected to provide half of America's electricity. So Buffett'll be using his own railway to ship coal to his own power stations.

"I love these bets," said Buffett.

No wonder.