Buffett's 'wager' on BNSF Railway also paying off in oil industry
NEW YORK -- When Warren Buffett bought North America's second-biggest railroad, he called it an "all-in wager" on the U.S. economy. It's turning out to be a pretty good bet on the oil industry, too.
Fort Worth-based BNSF Railway's track network puts it among the best-situated of its peers to meet shipping demand for hydraulic fracturing sand, pipe and crude in the northern U.S. Bakken region, where oil production has more than tripled since 2008, according to data compiled by Bloomberg.
Gains in mineral and chemical carloads helped BNSF pay a $1 billion distribution to Buffett's Berkshire Hathaway last month.
The railroad is the busiest in the U.S. in 2012 by traffic, positioning it to build on a 16 percent jump in 2011 sales that helped narrow the revenue lead of Union Pacific, which lacks tracks into the Bakken area.
Read more here: http://www.star-telegram.com/2012/03/04/3782966/buffetts-wager-on-bnsf-railway.html#storylink=cpy
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It happened to me, too, when I bought a railroad. But I was playing Monopoly at the time!
