The Attraction of Railroads and Timber as Investments

By on February 14, 2009

Chris Mayer of Contrarian Profits has written about the appeal of railroads and timber as investment vehicles. According to David Winters, longtime successful fund manager, railroads have large barriers to entry being difficult to duplicate. Warren Buffett has also discovered the charms of investing in railroads. Jeremy Grantham has pointed out that trees will continue to grow as long as the sun shines, so when prices are low timber can be left to appreciate naturally.

Personally, I would be leery of investing in railroads going into a recession/depression.



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