Billionaire investor Warren Buffett looks for long-term return and considers railroads the future. "They don't need the government to build them new highways and airports," he said in an interview with USA Today last month. "They've already invested heavily in their infrastructure and technology, and they plan to invest more to keep up with the growing demand. They're the only mode of freight transportation that can handle growth. What's not to like about that?"
In Buffett's most recent letter to shareholders, http://www.scribd.com/doc/27563128/Berkshire-Hathaway-Annual-Report he explains his and partner Charlie Munger's business tactics at Berkshire Hathaway (BRK.B). "Just because Charlie and I can clearly see dramatic growth ahead for an industry does not mean we can judge what its profit margins and returns on capital will be as a host of competitors battle for supremacy. At Berkshire, we will stick with businesses whose profit picture for decades to come seems reasonably predictable. Even then, we will make plenty of mistakes."
However, he doesn't want to discourage being aggressive when the market permits."Big opportunities come infrequently. When it's raining gold, reach for a bucket, not a thimble."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV