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Would you buy a Class I, which one?

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Posted by henry6 on Tuesday, February 16, 2010 4:01 PM

BNSFwatcher

Seeing that Warren Buffett already 'dumped' his NS and UP stock, I don't think so. 

Actually I believe he said he did that so as not to raise questions of sincerety and conflicts in his quest for BNSF.  He wanted to be clear of any and all other railroad properties so as not to start rumors and resulting ecnomomic problems (revolting stockholders...is that an adjective or adverb?) and other inquiries which would slow down the process.

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Posted by K4sPRR on Tuesday, February 16, 2010 3:49 PM

My wife tells me I am not good with my money, so I'm buying Amtrak!  (Questionable Class 1)  I would concentrate on corridor type service, better the relationship with host railroads and improve RofW to accomodate both passenger and freight.  ON TIME PERFORMANCE is what the customer wants, so I would have to assure that takes place.  Maintain affordable fares and blitz the public with advertising.

Trains cannot compete with airlines when it comes to long distance travel, therefore, overnight trains will change destinations and services to target vacationing families and the casual traveler.  People who travel for business purposes, long distance trains are not what they are looking for.  As to management, hire railroad people, not political hacks.  Get people who know the business of business, the business of railroads and be sure to have a government liason to keep those tax dollars coming my way.

Someone, please wake me up.  Please!!! Confused

  

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Posted by bubbajustin on Tuesday, February 16, 2010 3:37 PM

I’d buy NS. I’d keep the management. I’d restore some Southern 4-6-2 Pacific‘s, and some N&W Class Y Mallys, and then start up a community outreach program with the steamers. I‘d also run them on some of the coal trains in the West Virginia area. I think it would be cool to own the railroad that runs though my hometown.

We can only dream….

Justin

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Posted by Lord Atmo on Tuesday, February 16, 2010 2:46 PM

I'd buy CN and overhaul their customer service department. I would have CN run the same way WC did and have bonuses go to crews moreso than the management who simply doesn't need extra money.

Then I'd buy 5949 from HLCX and rstore it to CNW 8007 Laugh

Or maybe I'd buy CSX and tell their maintenance department to WAKE UP! I would also see to it that they stop backing locomotives into the turntable pit at cumberland twice a year

Your friendly neighborhood CNW fan.

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Posted by BNSFwatcher on Tuesday, February 16, 2010 1:56 PM

Seeing that Warren Buffett already 'dumped' his NS and UP stock, I don't think so.  The only richer person in the country, Bill Gates, owns a big stake in CN, but I don't like its being headquartered in Montreal.  I can't afford to buy an entire 'Class I', so I would need a couple of silent partners.  CP is attractive, headquartered a short drive from me.  There, I would repaint every locomotive into the maroon-grey-yellow scheme and put the "Beaver Shield" back on the noses.  Other than that, I'd leave management alone.  NS?  Much the same, but with a pleasing color scheme.  I do like the idea of re-naming CSX to "Atlantic Coast Line", but that management would have to go.  KCS/KCSM is cool, but is going to be gobbled up shortly, methinks.  Hungry, CP?  UP is way off my list, until they can run Amtrakers on time.  Perhaps the best bet would be to buy a 'Class II', or two, and go courting...

Hays

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Posted by coborn35 on Tuesday, February 16, 2010 1:33 PM
Buy CN, sell off the Missabe except for the Interstate Branch but retain trackage rights on the Missabe Sub, all managment is fired, rehire the two trainmasters fired for Hitler Harrisons mis-deeds, re-establish customer service, treat our employees right, and go from there.

Mechanical Department  "No no that's fine shove that 20 pound set all around the yard... those shoes aren't hell and a half to change..."

The Missabe Road: Safety First

 

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Posted by Ulrich on Tuesday, February 16, 2010 1:21 PM

i would buy CN or CP...I'm Canadian so that makes most sense to me. Besides those two roads are as good as any.

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Posted by carnej1 on Tuesday, February 16, 2010 11:09 AM

edbenton

Me it would be the NS then get in contact with Strasburg and Steamtown and say have 6 projects coming your way money is no object.  the Last Y-6b along with 611 1218 then for the Pennsy fans the last M1-a then tell the Friends of 765 she can run on her home tracks again as part of the Steam Program.  The last one is one of the Big Boys that is sitting around.  That way I can go to the UP and say we have the biggest thing and ours is still better. Then use them in Regular service hauling Freight and of course Excursions.  The Y6 would be used to haul coal when the customer wanted a show.  Can you imagine the Tree huggers face when that beast showed up on the point of the train.

I know NS has some wide clearances but would a 4-8-8-4 even be able to operate on their lines? I read a quote from the head of UP's Steam program awhile back where he claimed that a restored Big Boy would only be able to run on a small part of their system...

 But if you're going to go whole hog (and spend a few billion improving clearances) you should buy the Alleghany from the Henry Ford Museum and run it doubleheaded with the Big Boy..

 I doubt the Tree Huggers would care unless you bought a fleet of ACE3000's from Ross Rowland...

I'd buy Berkshire Hathaway and get BNSF as part of the deal..

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Posted by CShaveRR on Tuesday, February 16, 2010 10:40 AM
I don't know which railroad I'd buy, but I probably wouldn't change management at any one of them (except possibly CSX or CN). I think that I would be more of a philanthropist, putting money into such pie-in-the-sky things as commuter service from Chicago to St. Joseph, DeKalb, Morris, Janesville, or Kankakee.

Carl

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Posted by henry6 on Tuesday, February 16, 2010 10:04 AM

Understand that Buffet is the sole stockholder of BNSF.  Going out and buying stock in a railroad is not owning the railroad in the same way unless you buy all the stock.  Dave's question is a great question and the answers already are revealing and I am sure more answers and revelations are on the way.  BNSF management now has to answer only to Warren Buffet and Hathaway and not to thousands of shareholders or make public anything not so required by the STB. 

RIDEWITHMEHENRY is the name for our almost monthly day of riding trains and transit in either the NYCity or Philadelphia areas including all commuter lines, Amtrak, subways, light rail and trolleys, bus and ferries when warranted. No fees, just let us know you want to join the ride and pay your fares. Ask to be on our email list or find us on FB as RIDEWITHMEHENRY (all caps) to get descriptions of each outing.

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Posted by MP173 on Tuesday, February 16, 2010 9:21 AM

Don is right on the money.  Go out and buy your own railroad with your cash.

It doesnt have to be a large purchase.  Explore the options of a direct stock purchase from the company, avoiding a brokerage account. 

Ed

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Posted by oltmannd on Tuesday, February 16, 2010 9:17 AM
You don't have to be Warren Buffet to buy a RR. You can buy some stock in anyone you like. And, you'd have the right to at least ask those questions you pose. You can even have a piece of BNSF if you buy some Berkshire Hathaway stock. (BTW Buffet doesn't own all of BNSF. Berkshire Hathaway owns it and Buffet is a major stockholder, so personally, he only owns a small chunk)

Matt Rose did say that being owned by Berkshire Hathaway has relieved mgt from having to explain in gory detail the trade-off between short term results and long term strategy. It looks like BNSF has more freedom to take on some longer term investment strategy risk under Berkshire Hathaway.

-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/

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Posted by henry6 on Tuesday, February 16, 2010 9:04 AM

If I were as rich as Warren Buffet I'd probably also be as smart as Warren Buffet.  So of course I would apply the same reasoning and research.  And therefore end up buying BNSF for the same reasons he did.  If I were to be competing with him, then I'd have to buy UP.  If I were to be complimentary to him, then its a choice of CSX or NS for east coast traffic.  If it were to be supplimentry, then KCS or CN for the north-south traffic.  If I wanted to do a complete run around all of them, I'd buy CP for the coast to coast and find a friend in KCS.

RIDEWITHMEHENRY is the name for our almost monthly day of riding trains and transit in either the NYCity or Philadelphia areas including all commuter lines, Amtrak, subways, light rail and trolleys, bus and ferries when warranted. No fees, just let us know you want to join the ride and pay your fares. Ask to be on our email list or find us on FB as RIDEWITHMEHENRY (all caps) to get descriptions of each outing.

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Posted by grampaw pettibone on Tuesday, February 16, 2010 8:13 AM

I would take CSX in the blink of an eye. Other than rename it The Atlantic Coast Line Railroad Company and set up a heritage program, leave it to the current management to handle the day to day running,

Tom

COAST LINE FOREVER

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Posted by edbenton on Tuesday, February 16, 2010 7:30 AM

Me it would be the NS then get in contact with Strasburg and Steamtown and say have 6 projects coming your way money is no object.  the Last Y-6b along with 611 1218 then for the Pennsy fans the last M1-a then tell the Friends of 765 she can run on her home tracks again as part of the Steam Program.  The last one is one of the Big Boys that is sitting around.  That way I can go to the UP and say we have the biggest thing and ours is still better. Then use them in Regular service hauling Freight and of course Excursions.  The Y6 would be used to haul coal when the customer wanted a show.  Can you imagine the Tree huggers face when that beast showed up on the point of the train.

Always at war with those that think OTR trucking is EASY.
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Posted by Mookie on Tuesday, February 16, 2010 7:18 AM

I'd buy NS and then call Mr. B.....

She who has no signature! cinscocom-tmw

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Posted by caldreamer on Tuesday, February 16, 2010 7:09 AM

I would purchase UP.  I would get rid of the current management and hire people that know what they are doing.  Overhaul the operations staff so that the railraoad runs as efficiently as possible.  Be MUCH more friendly to employees and railfans.  Work with customers individually to give them the best rate possible and still make a good profit.  Work to double track the entire railroad a little at a time to speed traffic.

 

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Would you buy a Class I, which one?
Posted by daveklepper on Tuesday, February 16, 2010 4:40 AM

Suppose you were as rich as Warren Buffett.   Would you buy a Class I railroad.  If so, which one?  If not, why not?  If you were to buy the Class I railroad of your choice, what do you see as its major problems and how would you solve them?   Would you retain or overhaul the current management?   What changes in operations, sales, equipment, employee relations, and RofW would you try to implement?   How would you go about implementing these changes?

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