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Monopoly Rule of “always buying railroads, never buying utilities” - True in Real World 20/03/08

warren buffett 

The richest man in the world is up to something new, buying railroads!  Warren Buffett has recently purchased and brought his ownership of Burlington Northern Santa Fe to more than 18%.  The CNN Money article goes on to name three factors that will continue to drive the growth of the railroad industry: (1)Technology is creating greater cost efficiencies, (2)Railroads have been merging, and (3)these big systems can enjoy enormous cost efficiencies.

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