P.S. Come by rail.

[Joel N. Weber II]

Warren Buffett's letter in the 2009 Berkshire Hathaway annual report ends with ``P.S. Come by rail'', the last paragraph of the letter being about their annual meeting. (This is on the 22nd page of the pdf, which has page number 20 printed within the page.)

I don't see any explicit mention of Amtrak anywhere in the letter, but it seems that most of the viable strategies for people to travel along track owned by Berkshire Hathaway (which is to say, BNSF track) involve Amtrak.

The letter also talks about how Buffett expects BNSF to have many of the same characteristics as a regulated electric utility. And he talks about how the electric utility owned by Berkshire Hathaway hasn't paid a dividend in an decade because it's busy investing in physical infrastructure, and how regulated utilities are seen as being useful for absorbing capital generated by other parts of Berkshire Hathaway.

This makes me wonder if there are investments that wouldn't have produced a good enough return soon enough when BNSF was an independent company that Berkshire Hathaway will be interested in making in physical railroad infrastructure.

 

[MikefromCrete]

Warren Buffett's letter in the 2009 Berkshire Hathaway annual report ends with ``P.S. Come by rail'', the last paragraph of the letter being about their annual meeting. (This is on the 22nd page of the pdf, which has page number 20 printed within the page.)
I don't see any explicit mention of Amtrak anywhere in the letter, but it seems that most of the viable strategies for people to travel along track owned by Berkshire Hathaway (which is to say, BNSF track) involve Amtrak.

The letter also talks about how Buffett expects BNSF to have many of the same characteristics as a regulated electric utility. And he talks about how the electric utility owned by Berkshire Hathaway hasn't paid a dividend in an decade because it's busy investing in physical infrastructure, and how regulated utilities are seen as being useful for absorbing capital generated by other parts of Berkshire Hathaway.

This makes me wonder if there are investments that wouldn't have produced a good enough return soon enough when BNSF was an independent company that Berkshire Hathaway will be interested in making in physical railroad infrastructure.

So, where is the meeting taking place?

 

[Alice]

So, where is the meeting taking place?

Omaha May 1

Here is rest of company info, including annual report and Buffett's letter.

 

[sechs]

This makes me wonder if there are investments that wouldn't have produced a good enough return soon enough when BNSF was an independent company that Berkshire Hathaway will be interested in making in physical railroad infrastructure.

Berkshire Hathaway won't be making any more investment in railroad infrastructure than it already has. The theory, at least, is to buy a good company with good management and stay out of their way.
Burlington Northern Santa Fe will never need to pay a dividend again and, therefore, can reinvest all profits into the company. Furthurmore, it will no longer need to quarterly justify investments with decades-long returns.

As a BRK shareholder, I read a number of articles about this merger. One talked about how difficult it was for management to convince shareholders at the time of the BN-ATSF merger to spend millions to knit the two railroads together; they were successful in getting and executing these improvements, but that road is now one that they will never have to travel again. Another talked about why Berkshire didn't buy other railroads, particularly Union Pacific, which is headquartered in Omaha; one of the major reasons given is that they are still doing the work necessary bring the ex-SP up to snuff -- and that's millions of dollars that isn't going to make the railroad more profitable.

 

[rrdude]

As a BRK shareholder,

So, will you be ".........Coming by rail........" to the shareholder meeting?

 

[sechs]

I've never been to one of the shareholder meetings. I might go some day, but, right now, they look to be a little crazy to me. I don't need any Nebraska furniture or cowboy boots.

I'll limit myself to the no-crater zone in Omaha.

 

[sechs]

An interesting sidebar on this:

http://www.businessweek.com/news/2010-03-3...than-paris.html

A nonstop airline ticket from New York to Paris on the first weekend in May costs $1,142. A Continental Airlines Inc. flight to attend Berkshire Hathaway Inc.’s annual shareholder meeting in Omaha, Nebraska, the same weekend: $1,433.

Taking Amtrak NYP to OMA, arriving on the evening of the 30th, in a roomette is still less than $900. And that includes meals!