No changes will be made as it always has been the case for the investments made by Buffet. In fact, it is important that Buffet utilizes the management's capabilities and keep them in their current place. That is what he will do.
Rose, CEO of BNSF, will have an easier time in borrowing funds. That will be one of the perks of being acquired by a triple-A rated company.
The reason for Buffet's investment in the company is simple. BNSF has managed to double its revenue from 2001 to 2008. They have also managed to reduce expenses while at the same time expanding capacity. This has been achieved by reducing variable costs through the use of longer and fewer trains. Capacity has been increased by including parallel tracks and increasing the number of locomotives under the company's ownership. The company also has no problem in generating free cash flow.
Buffet seems to understand the US economy well. By making a bet on railroads when diesel prices are increasing, Buffet understands that railroads will be the transport mode of choice as trucks would be more expensive in such a situation.
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