Wednesday, April 7, 2010

JPMorgan (NYSE:JPM) Invests in Rail Companies

JPM Global Railway Stock Fund

Following in the footsteps of Warren Buffett and Berkshire Hathaway (NYSE:BRK-A), JPMorgan (NYSE:JPM) has decided to invest in companies carrying freight like Burlington Northern Santa Fe does, via their JPM Global Railway Stock Fund.

Many investors who like commodities don't realize cargo carriers are a huge commodity play, as it's one of the major ways that raw materials are transported.

The JPM Global Railway Stock Fund is investing primarily in U.S. rail companies at this time.

With the rising costs of oil and gas, an increasing number of investors are looking to railroads a the preferred, and ultimately cheapest way to move freight in the years ahead.

When taking into account the tonnage moved and diesel used per ton, railroads are more efficient and cost effective than their competitors, something that should drive up the share prices going forward.

Since it launched in January, the JPM Global Railway Stock Fund has enjoyed gains of 11 percent. Shares are traded only in Japan.

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