Shares have soared over 108% in the last 52 weeks, with an over 33% gain in 2017 alone. The company also throws off an annual dividend yield greater than 1.5% and boasts a substantial $45 billion-plus market cap. Sounds like a miracle company, right? I know, when I first heard the above performance stats, I immediately thought this was some under-the-radar, high-tech hardware company quietly taking over its sector. #-ad_banner-#I was shocked to discover that this company is part of the oldest transportation industry in the United States, railroads. Other than hearing some chatter about Warren Buffett investing in the… Read More
Shares have soared over 108% in the last 52 weeks, with an over 33% gain in 2017 alone. The company also throws off an annual dividend yield greater than 1.5% and boasts a substantial $45 billion-plus market cap. Sounds like a miracle company, right? I know, when I first heard the above performance stats, I immediately thought this was some under-the-radar, high-tech hardware company quietly taking over its sector. #-ad_banner-#I was shocked to discover that this company is part of the oldest transportation industry in the United States, railroads. Other than hearing some chatter about Warren Buffett investing in the industry, I believed that railroad companies were simply too old school, slow, and close to dying off. Boy, was I wrong! In the United States, railroads are a $60 billion industry consisting of 140,000 miles of tracks. It is a highly monopolistic industry with nearly insurmountable barriers to entry for additional competitors. According to the Federal Railroad Administration, the rail network makes up approximately 40% of U.S. freight moves by ton-miles (the length freight travels) and 16% by tons (the weight of cargo moved). In general, bulk freight, such as grain and coal, ships in rail cars and consumer goods,… Read More