Perhaps the most famous investor in the world, Warren Buffett, is making the biggest bet of his career on the long-term health of the U.S. economy.
Buffett’s Berkshire Hathaway on Tuesday agreed to buy the 131-year-old Burlington Northern Santa Fe railroad for $26 billion.
A railroad might strike many people as a bit old-fashioned — more 19th century than 21st, the New York Times writes. But Buffett is wagering that as the economy revives, so will the demand for goods to be shipped by train.
Burlington Northern carries coal and timber from the West, grain from the Midwest and imports arriving directly from Mexico and Canada, as well as through California ports, the Times reports.
Buffett is also betting that higher oil prices down the road will work against the trucking industry and for railroads like his.
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