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.
Showing posts with label Warren Buffett Commodities. Show all posts
Showing posts with label Warren Buffett Commodities. Show all posts
Wednesday, April 7, 2010
Wednesday, March 10, 2010
Jim Rogers' Investing Preparation
Jim Rogers Investment Preparation
Investor Jim Rogers said in response to a recent question on the Greek sovereign-debt debacle, what he is looking for to be sure things don't get out of control over there. His answer was telling as to the reasons behind his investment success.
Rogers said that he tries to watch as much of the world as he is possibly able to in order to make the most informed decisions.
This reminds me of how Warren Buffett studies the books and reports of companies he is looking at. One time someone mentioned he reads them like pulp ficton. And he does.
Many times when investors like Jim Rogers and Warren Buffett seem to be moving by instinct or some inner sense, the reality is they've honed their senses by their endless homework, and so when they make their share of right investment choices, it seems they have some type of gift or inner sight, when they are just the hardest workers out there in their respective fields, and the results prove they are.
Jim Rogers Investment Preparation
Investor Jim Rogers said in response to a recent question on the Greek sovereign-debt debacle, what he is looking for to be sure things don't get out of control over there. His answer was telling as to the reasons behind his investment success.
Rogers said that he tries to watch as much of the world as he is possibly able to in order to make the most informed decisions.
This reminds me of how Warren Buffett studies the books and reports of companies he is looking at. One time someone mentioned he reads them like pulp ficton. And he does.
Many times when investors like Jim Rogers and Warren Buffett seem to be moving by instinct or some inner sense, the reality is they've honed their senses by their endless homework, and so when they make their share of right investment choices, it seems they have some type of gift or inner sight, when they are just the hardest workers out there in their respective fields, and the results prove they are.
Jim Rogers Investment Preparation
Monday, January 25, 2010
Buffett, Inflation and Posco (NYSE:PKX)
Asian Steel Maker Posco (NYSE:PKX)
Knowing historically how Warren Buffett has resisted investing much in the commodity sector, it's telling that he has invested a significant amount in Posco (NYSE:PKX), the most profitable steel maker in Asia.
Posco has been an extremely successful company over the last decade, enjoying an average profit of 19.7 percent during that period of time.
The stake Buffett owns in Posco via his Berkshire Hathaway (NYSE:BRK-A) isn't a small one, as he acquired 3.95 million shares as of last February 28 for $768 million, and they've now increased in value in that short time to $2 billion.
With Buffett also buying into energy companies recently, you do have to ask the question of what it is he is doing, and all indicators seem to say he's protecting against inflation, which he knows is coming, and is already here really.
Of course Buffett won't mind the inevitable rise in prices these large commodity companies will enjoy, as his stakes in ConocoPhillips (NYSE:COP) and Exxon Mobil (NYSE:XOM) show.
In reality, the Burlington Northern (NYSE:BNI) acquisition by Buffett could easily be considered a commodity move, at least in part, as much of the freight moved by the railroad is definitely raw materials and livestock.
Concerning the ongoing relationship between Posco and Warren Buffett, Buffett somewhat contradicted the assertion by Posco executives he is looking to continue investing in the company. That caused shares in Posco to decline after Buffett rumors persisted until he addressed them recently.
Buffett maintains he would buy more shares if the price goes down, and he has no plans to sell any shares.
Asian Steel Maker Posco (NYSE:PKX)
Knowing historically how Warren Buffett has resisted investing much in the commodity sector, it's telling that he has invested a significant amount in Posco (NYSE:PKX), the most profitable steel maker in Asia.
Posco has been an extremely successful company over the last decade, enjoying an average profit of 19.7 percent during that period of time.
The stake Buffett owns in Posco via his Berkshire Hathaway (NYSE:BRK-A) isn't a small one, as he acquired 3.95 million shares as of last February 28 for $768 million, and they've now increased in value in that short time to $2 billion.
With Buffett also buying into energy companies recently, you do have to ask the question of what it is he is doing, and all indicators seem to say he's protecting against inflation, which he knows is coming, and is already here really.
Of course Buffett won't mind the inevitable rise in prices these large commodity companies will enjoy, as his stakes in ConocoPhillips (NYSE:COP) and Exxon Mobil (NYSE:XOM) show.
In reality, the Burlington Northern (NYSE:BNI) acquisition by Buffett could easily be considered a commodity move, at least in part, as much of the freight moved by the railroad is definitely raw materials and livestock.
Concerning the ongoing relationship between Posco and Warren Buffett, Buffett somewhat contradicted the assertion by Posco executives he is looking to continue investing in the company. That caused shares in Posco to decline after Buffett rumors persisted until he addressed them recently.
Buffett maintains he would buy more shares if the price goes down, and he has no plans to sell any shares.
Asian Steel Maker Posco (NYSE:PKX)
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