Over the long haul, nobody can argue with Warren Buffett's masterful approach to value investing. In a volatile trading environment like this one, though, you just might be able to outperform him.
According to a recent filing, Buffet's Berkshire Hathaway
Mirroring strong results from competitor CSX
Burlington overcame a 7% decline in overall freight volume largely because a two-month lag exists between fuel prices and the fuel surcharges the company passes onto customers. This boost, then, is a result of the uncanny speed with which oil collapsed from more than $140 per barrel to near $40 during the second half of 2008. With limited downside remaining for oil, that train has left the station.
Furthermore, whereas competitors CSX and Norfolk Southern
Within a cauldron of unnerving economic indicators and a plague of reduced guidance for corporate earnings, Burlington's fourth-quarter and year-end results may look like a beacon through the fog. However, I believe the results foretell some significant obstacles ahead, and urge Fools to consider their moves carefully here. While I view quality rail carriers as excellent long-term investments, I am increasingly convinced that better entry points lie ahead for Burlington and other carriers.