Or Warren is trying to give it all back.
Bigbee_US wrote:
> The Railroad and the Electric Company
> Written by Bill Harder
> Sunday, 08 November 2009 00:27
> Warren Buffett's purchase of Burlington Northern Railroad could be an
> absolutely brilliant long term investment. This investment has the
> ability to combine electric power generation with railroad right-of-
> ways.
> In my opinion railroads are generally a real estate play. They own a
> lot of property with low grades that crisscross the entire United
> States. Berkshire Hathaway holdings of MidAmerican Energy is a
> electric utility that generates and distributes power. The
> combination of the two provides a very potent energy generation
> company with a distribution right-of-way.
> For those not familiar with HVDC let me explain. High Voltage Direct
> Current allows for the transmission of millions of volts across
> smaller cables that can be buried underground verse traversing the
> eyesore towers. If you want to increase business why not sell power
> direct to your business customers that have a rail spur or transmit
> bulk power thousands of miles to backup another utility. Not a
> problem if you own the railroad right of way. Want to make high speed
> cross country electric trains? Put an electric company on the right
> of way and you have the combination of MidAmerican and Burlington
> Northern. This is a phenomenal way to increase the asset value of two
> highly regulated industries.
> Like I said this could be an absolutly brilliant investment, but you
> better be a long term thinker.
> Bill Harder
> http://www.billharder.com/investments/46-general-investment/125-the-r...
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