3 Railroad Stocks to Buy Now That Strike Fears Have Left the Station
Last week, a tentative deal was announced between unions and the railroad companies averting a national strike that could have seen 125,000 railroad workers go on strike. It also avoided a major economic disruption at a time when a recession remains a real possibility. Since the announcement of the deal on the morning of Sept. 15, railroad stocks are generally lower. Part of the reason for investor apathy around railroad stocks may be that the White House-brokered deal could still fall apart if one of the 12 unions involved fails to ratify a new contract. Essential details in the agreement have yet to be ironed out. Some union leaders feel the agreement’s language was intentionally vague so as not to back the railroads into a corner on various issues such as sick leave and unsafe working conditions. However, as a rule, railroad stocks tend to be good long-term investments. Berkshire Hathaway’s (NYSE: BRK-B ) $26.7 billion purchase of Burlington Northern Santa Fe railroad in February 2010 has certainly proven prosperous.
3 Railroad Stocks to Buy Now That Strike Fears Have Left the Station
Last week, a tentative deal was announced between unions and the railroad companies averting a national strike that could have seen 125,000 railroad workers go on strike. It also avoided a major economic disruption at a time when a recession remains a real possibility. Since the announcement of the deal on the morning of Sept. 15, railroad stocks are generally lower. Part of the reason for investor apathy around railroad stocks may be that the White House-brokered deal could still fall apart if one of the 12 unions involved fails to ratify a new contract. Essential details in the agreement have yet to be ironed out. Some union leaders feel the agreement’s language was intentionally vague so as not to back the railroads into a corner on various issues such as sick leave and unsafe working conditions. However, as a rule, railroad stocks tend to be good long-term investments. Berkshire Hathaway’s (NYSE: BRK-B ) $26.7 billion purchase of Burlington Northern Santa Fe railroad in February 2010 has certainly proven prosperous.