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This Train Will Keep Rolling

This article is part of our Rising Star Portfolios series.

I understand it. You love railroads, but those pricey multiples just don't get your motor running. My sympathies. I've had it out for Warren Buffett, Berkshire Hathaway's (NYSE: BRK-A  ) (NYSE: BRK-B  ) wunderkind, since he first took stock of Burlington Northern Santa Fe. Maybe it wasn't his doing, but the stocks have never looked cheap.

Well, that's changed, but not because the sector's taken pity on our poor souls. RailAmerica (NYSE: RA  ) , a Fortress (NYSE: FIG  ) leveraged buyout, was taken public again just about a year ago, and with it, we've the keys to a veritable value trifecta. It's actually more than a value trifecta -- but the word trifecta's just tickling to say and write. With monopoly assets, recently righted operations, and room to run in its turnaround, RailAmerica's a train that's likely to keep a-rollin'. And that's just why I've bought it for my Rising Stars portfolio. Come join me on my discussion board, or read my original write-up here.

This video is part of our Rising Star Portfolios series, where we give some of our most promising stock analysts cold, hard cash to manage on the Fool's behalf. We'd like you to track our performance and benefit from these real-money, real-time free stock picks. Click here to see all of our Rising Star analysts (and their portfolios).

Michael Olsen is the Senior Analyst at Motley Fool Special Opportunities, the Fool's special situations newsletter. He owns shares of Berkshire Hathaway and believes that "Train Kept A Rollin'" as performed by Led Zeppelin is a fine piece of music. Berkshire Hathaway is a Motley Fool Inside Value recommendation. Berkshire Hathaway is a Motley Fool Stock Advisor selection. The Fool owns shares of Berkshire Hathaway and RailAmerica. The Motley Fool has a disclosure policy.

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Related Tickers

10/21/2016 2:12 PM
BRK-A $215290.00 Down -1685.00 -0.78%
Berkshire Hathaway… CAPS Rating: *****
BRK-B $143.55 Down -0.94 -0.65%
Berkshire Hathaway… CAPS Rating: *****
FIG $5.20 Down -0.02 -0.38%
Fortress Investmen… CAPS Rating: ****
RA.DL2 $0.00 Down +0.00 +0.00%
RailAmerica CAPS Rating: ***