Last week, under the guise of betting on America, Warren Buffett and his Berkshire Hathaway (BRK.A) made an offer to buy all outstanding shares of Burlington Northern (BNI) for a significant premium.
In making the announcement, Buffett confidently claimed that rail would play a big role in the recovery of the economy. What he did not say was that this was a bet on the U.S. dollar.
In fact, the U.S. dollar is the primary reason why Buffett is making this move. With the dollar plunging, manufacturing in this country becomes much more attractive to foreign importers.
And how do we get those goods overseas? The ports and shipping will play a role no doubt, but so, too, will rail. BNI will be a huge beneficiary of increasing manufacturing activity and the transport of goods from factory to port.
It is a very simple formula, and making a bold investment in advance of the actual trend is what this deal is all about. Yes, it is a bet on American business, but it is more about a bet on American business selling its goods overseas.
Are there other businesses beyond the rails and BNI that will benefit from this emerging activity?
Here are five manufacturing firms that Buffett's BNI will be transporting en masse as the dollar continues its decline.
Click on each stock to learn more.
Stock #1: Whirlpool (WHR)
Stock #2: Caterpillar (CAT)
Stock #3: Starbucks (SBUX)
Stock #4: PepsiCo (PEP)
Stock #5: Apple (AAPL)
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Reader Comments (Page 1 of 1)
11-14-2009 @ 6:22PM
Peg said...
OH PULLLLEASE! The ONLY winners are the messiah's buddies and the fat cats with the golden parachutes! I'm about ready to pull my hard-earned money out of the bank and stuff it in my flippin mattress!
11-17-2009 @ 6:52PM
The Citizen said...
No Peg, the real winners are the lazy unions, and those who live off wefare/ssdi. They benefit from soaking the working American for their hard earned tax dollars. The health care bill singles out benefits for the unions, and those too lazy to work, read it and weep people.