BNSF, cash machine

[tom mann]

http://www.bloomberg.com/news/2014-11-10/buffett-s-15-billion-from-bnsf-show-railroad-came-cheap.html

[C855B]

Well, as the article goes on to say, it's the entire sector, not just BNSF.

Since Mr. Buffet bought BNSF five years ago, a transportation mutual (FSRFX) incorporating the major RRs plus a couple of airlines has risen 150%... versus 115% for Berkshire Hathaway/A. BRK/A capitalization is around $180B, which means that the RR is roughly 30% of the holdings. I'm going to go out on a limb here and postulate that the lion's share of the gains over five years for the stock have been attributable to the RR. It was an astute and timely purchase, but not really all that special other than the huge lump sum involved.

[Spikre]

 
   5 years already ?
    and they still cant come up with a real name ?
   guess that would COST Too Much ?
      Spikre
       

[Kisatchie]

   5 years already ?
    and they still cant come up with a real name ?
   guess that would COST Too Much ?

Hmm... I'd come up with
a good name for 'em
for $50...

[nkalanaga]

BNSF works fine for the railroad and its customers.  Easy to remember, easy to write, and easy to paint on a car.  Besides, how many railroads with "real" names sooner or later became known mainly by their initials, at least in casual conversations?  Even the Milwaukee and Soo Line were once nicknames.

[C855B]

BNSF works fine for the railroad and its customers.  Easy to remember, easy to write, and easy to paint on a car. ...

And it also fits the several-decade trend of reducing the company name to just initials, mostly to obfuscate an old identity so it doesn't "define" what the business does should it want to pursue product lines outside the original name. Who remembers that IBM was International Business Machines? And is it important now since hardware is a very small part of their business?

Besides, "BNSF" is certainly no worse than that abomination, "CSX".

[GaryHinshaw]

The railroad resurgence is remarkable.   Who remembers John G. Knieling, The Professional Iconoclast, from the David P. Morgan era of Trains magazine?  Many of the changes he advocated for have come to pass.  I wonder what he would be saying if he were alive today?  An interesting retrospective of his contributions may be found here, including a sample column on p.6.  I miss The Magazine of Railroading, as DPM coined Trains.

Berkshire Now Ships Freight (BNSF)

[Spikre]

 
   one thing that John K.N. kept advocating was the RRs stop buying All Equipment,
   and wear out what they had.
   that has not come to pass yet, and likely never will.
   new equipment mistakes abound on TTX,too many Railboxes,and Railgons,sold off at a loss.
   well cars the wrong length, shortened, stretched, but always second guessing the market,
   or confusion over Domestic or Foreign Container traffic flows.
   4 wheel Front Runner trailer cars that didn't hold up in general service,but may have if segregated to
   only like equipment.
     forgot to mention CSX as they are not a high priorty here,even though Richmond is said
   to be their Home Base.
    CN also seems to be moving to being an Initial road .
    think John K.N. would be churning out plenty of disgust at the Current RR scene.
           Spikre
           
     
   

[C855B]

    CN also seems to be moving to being an Initial road .

Not that we see here. Brand new "high visibility" public contributions in our city may have the noodle, but are also clearly identified as "Canadian National".