THE TEXAS HEDGE REPORT - RAILROADS: FOLLOWING BUFFETT’S LATEST MOVE

With Buffett’s latest railroad purchases making headlines, we thought it might be timely to take a look at this industry. A casual glance will show that the large rail stocks Buffett has been buying are trading at greater than 15x trailing earnings. That seems a pretty full price to pay for a stock not named Coke or Gillette!