Message Font: Serif | Sans-Serif
No. of Recommendations: 0
One would like that, but it hardly ever happens.

>> 1. In most cases, there's only one other railroad that operates parallel routes, so the loss of competition would create a monopoly.

>> 2. There are also very strong political forces aiming to sustain rail service to communities and shippers that would lose it if a railroad were to fail.

And so they are and continue to be the giants in that sector and therefore continue to be good investments (at the right price).

Monopolists with increasing cashflow and dividends, with a very high entry cost for potential competitors. What more could we ask for??? The history that I looked at shows that RR's do really well during this part of the economic cycle, as they are doing now. $$ :):)

Print the post  


The Great Foolish North
Canadian social and off-topic banter.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.