"Burlington Northern Santa Fe has picked up the lion's share of the coal shipping market for the Powder River Basin. It would be next-to-impossible for competitors to build an equivalent network in the region. In short, BNI's economic moat is wide.

"Investors often avoid the rails during economic downturns, but BNI's exposure to less cyclical business lines such as the transport of coal and agricultural products is sheltering it from the slowdown in the U.S. economy. Berkshire has been taking advantage of recent depressed prices to add to its stake in Burlington Northern.

"WABCO makes braking systems, suspension systems and transmission controls for commercial vehicles like trucks, buses and trailers. The firm operates mainly at the high-tech end of the industry, making advanced compressed air braking systems and electronic components used to aid drivers and automate functions rather than commodities like brake pads or discs.

"WBC is a new position for Buffett. Berkshire recently showed purchases of some 2.7 million shares, equivalent
to nearly 4% of the company's outstanding stock.

"WABCO has two primary avenues of growth: increasing penetration of existing products and expansion into
new markets. To the first point, in Europe the advanced control systems WBC makes account for about 2.5%
of the average truck's value. In the U.S., Japan and Korea, the average is closer to 1%. And in China and Eastern Europe, it's less than 0.5%.

"Part of this is due to EU mandates concerning electronic stability controls on trucks and busses. But there
are also other reasons -- such controls can improve the operating efficiency and service life of commercial
vehicles. This has long been an issue in Europe, famous for its sky-high fuel and labor costs.

"But in a period of high energy prices and high costs for experienced drivers and raw materials, enhanced
efficiency can mean major cost savings in all countries. As trucking firms in these nations strive to enhance efficiency, WBC's penetration in all markets should rise toward European levels.

"Moreover, WBC has established a sales force in China and has a joint venture to tackle the Indian market. And of course, Eastern Europe is a logical growth market for WBC; the company's existing commanding presence in Western Europe gives it an advantage.

"The stock trades at 11 times estimated 2008 earnings and sports a long-term growth rate of around +10%. The stock has been hit recently over fears a slowing global economy will slow sales, but WABCO's long-term growth story is still intact. Like Buffett, we feel the stock offers strong global growth potential at a bargain price."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.