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Is Warren Buffett Inspiring a Rail Bubble?

NEW YORK ( TheStreet) -- The Warren Buffett bubble in railroads has burst twice already; is it going to be punctured again before year-end?

That is the question being posed by UBS Investment Research, and which led to a downgrade on Union Pacific (UNP - Get Report), judged by UBS the most expensive stock in the rail sector.

The rail industry has outperformed the S&P 500 by 10% since Berkshire Hathaway (BRK.A - Get Report) announced its acquisition of Burlington Northern (BNI) on Nov. 3.

The two previous Buffet investments triggered a spike in rail shares , which in turn was shortly thereafter followed by the rail sector giving back half of those gains.

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SYM TRADE IT LAST %CHG
BRK.A $214,490.00 0.00%
CP $197.47 0.00%
CNI $66.18 0.00%
CSX $37.12 0.00%
KSU $106.50 0.00%

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