Buffett Rail Rally Defies Analysts Seeing End to Gains: Freight
This article is for subscribers only.
Investors are driving railroad stocks to the best start to a year since 2008, looking past downgrades by Wall Street analysts, in a bet that Warren Buffett is right about the carriers’ long-term prospects.
A 23 percent surge for the Standard & Poor’s 500 Railroads Index in 2013 is outpacing the S&P 500’s 14 percent jump. The gains are being extended even with the proportion of buy ratings on Union Pacific Corp., the largest U.S. railroad, and Kansas City Southern, the fastest growing, at the lowest since 2010.