netgarden’s posterous

"Buffett is a pretty canny investor, as he has shown over many decades. If international trade is picking up and there starts to be more life in consumer spending, having a bigger investment in railroads makes a lot of sense," said Bob Baur, chief global economist with Principal Global Investors in Des Moines, Iowa.

So as stodgy as railroads and other transportation companies may seem in this era of instant gratification consumption, the sector is still vital to the nation's economic health.

Buffett admitted as much in Berkshire's statement about the Burlington acquisition. "Our country's future prosperity depends on its having an efficient and well-maintained rail system," he said.

Many financial experts believe that the performance of railroads, truckers and other transportation companies is a good leading indicator of how the economy and broader market will do.