Warren Buffet likes BNI, Burlington Northern Corporation Santa Fe Railway. He has bought billions of dollars worth of stock in this venture and with good reason. As oil continues to go up, the need for other types of transportation will become popular. Railways that run on electricity and/or coal are a lot more efficient and cheaper especially in times where the oil prices keep on moving up. Bill Gates likes CNI, Canadian National Railway Company. These guys are investing in the long-term and they both already started investing early in the 2000’s. If you look at either of these stocks today, both have skyrocketed and will continue to grow bigger.
Let’s turn to China. Beijing Olympics 2008, World Trade Fair in 2010, growth that is increasing at an exponential rate (at least 10% every year), and a booming economy that is trading tons more exports than imports. The people are becoming regular-day consumers wanting the best computers, televisions, and cars. Eventually, they will want to take vacations and travel more often. GSH, Guangshang Railway, is a Chinese railroad service that has been decreasing from a high of $40. It has a PE of 20, which is a little on the high-end for railroads, but still growth stock. As the Chinese stock market continues to decline, this stock longs more and more like a bargain. I will be keeping an eye on this stock and I think you should too! Long-term, it will definitely be a keeper and if you can get in below $20, you will find yourself to be a happy camper in the long run.