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Buffett: Railroad business is 'in tune with the future'

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Published at: www.usatoday.com

Toby Kolstad, President

Toby KolstadPresidentRail Theory Forecasts What is a GLG Leader?|The Gerson Lehrman Group&reg; (GLG) Leader Program<sup>SM</sup> is our premium Member Program<sup>SM</sup>. Those identified as GLG Leaders are in the top 5% of GLG CouncilRank and have an exclusivity agreement with GLG.

Mr. Buffet, buying a real railroad is not like in the board game.

November 6, 2009

Hardly anyone can resist the temptation to by a railroad in the game of “Monopoly.” They are reasonably priced, have OK earnings potential, and if all four are owned, they have outsized rental rates and the payment rates with sites on all four sides of the board. In real life however, railroads are rarely cheap compared to their earnings and the STB will keep anyone from owning more than one. So why would such an astute investor as Warren Buffet purchase one?

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