Berkshire Hathaway Booms, is Recovery Here?

There is one scary figure in Berkshire’s first quarter results and that’s cash and short-term investments. Why has Uncle Warren stashed $96.46 billion in the bank?

An obvious and frightening reason is that Buffett and crew think the U.S. economy is on shaky economic ground. They think something is about to give in the American economy, and when it does they plan to go shopping.

Read more

Has Kansas City Southern Turned Around?

The railroad is definitely overpriced at the $89.5 a share it was trading at on April 28, 2017. There’s nothing in the earnings report to justify that number.

Read more

Railroads’ Problems are Hyperloop’s Opportunity

The ongoing decline of coal and railroads might be a huge opportunity for Hyperloop. Hopefully some far-sighted executive will seize upon it.

Read more

Kansas City Southern: A Railroad in Decline?

The situation at Kansas City Southern should make investors reconsider the notion that railroads are a value investment. Changing economic conditions are calling that value theory into question. Political conditions and the potential of major technological disruption; in the form of innovations like Hyperloop, make railroads a far riskier investment than they once were.

Read more

Is the Kansas City Southern a Value Investment?

As you can see, the Kansas City Southern is a riskier investment than other U.S. railroads because of its exposure to Mexico. Yet it is still a good value because of its low cost, profits and position as a trade corridor between the United States and our neighbor to the south.

Read more