7(6) just left Wolf Point 3:45 late. We crossed all of ND at 59 mph or less. There weren't too many stops, but it's evident that we were behind freights the whole way across the state.
You wrote, "The BNSF people saw this coming and wanted to do something about it. The non-railroad people ignored the experts and said "no"." The money to something about it had to come from somewhere. BNSF has a finite pool of money for route improvements. More for the Hi Line means less for someplace else. Where would that place be, except the southern transcon?Where did I say such a thing?How can you say that BNSF should have diverted investment from the southern transcon to the Hi Line? How much greater would be the ROI?
How are they missing out on revenue? How else is the oil being shipped out of North Dakota? Sure, CP gets some, but they looked to maxed out at a very low rate. BNSF can improve its track at its own schedule, and ship out stuff at whatever rate it finds most advantageous to itself. If shippers don't like it they can either get the government involved or go and pound sand. Grain shippers have done both for decades, with mixed results.They still have to invest the money, they're probably paying a premium for the rush nature of the jobs, and they're missing out on revenue while doing it. If the suits at BH had listened to the railroad people years ago, things would undoubtedly be better. But these are the things that happen when you prioritize short term profits over everything else.
Don't you just hate Facts.Berkshire Hathaway (BRK) does not and never has paid shareholders a dividend. No portion of profits is returned to investors. Although it is a "public" company, Warren Buffett holds 34.4% of the aggregate voting rights of the Class A and Class B shares. Directors and executives, as a group, hold 38.5% of the voting rights. While little old ladies and even some rail advocates may own shares directly or through institutional ownership, the BRK show is run by Buffett.Interestingly, BRK reported what analysts felt was disappointing first quarter earnings. Reduced profits in railroad operations was noted as a driver. I have no idea if that is in any way related to the issues in North Dakota. Don't feel too sorry for BRK or Warren. BRK still had net income of $4.7 billion for the three months.By the way, one share of BRK Class A stock will set you back a cool $191,550 based on today's close (no, I did not miss a decimal point). Warren owns 336,000 of those bad boys - market value a tad over $64 billion.
Looks like the westbound EB took main two into St. Paul, whereas normally it would have taken main one (the red line).Ok, what's going on here? I never seen the train go this way before??ImageUploadedByAmtrak Forum1399520865.351112.jpg
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That sucks. :-(And now 8(6) is stuck in New York Mills with a crew going out to catch it from St. Cloud. Almost tempted to cut my losses and head back home instead of going to SPUD today.
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I didn't hear why.That sucks. :-(And now 8(6) is stuck in New York Mills with a crew going out to catch it from St. Cloud. Almost tempted to cut my losses and head back home instead of going to SPUD today.
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Did they say why it was stuck up there??
I am a Berkshire Hathaway shareholder, and I am pissed.If I were a Berkshire Hathaway shareholder, I'd be pissed.
You're a bit confused. Berkshire Hathaway doesn't pay dividends. There was a shareholder ballot measure asking them to at this year's annual meeting, but Warren refused.I don't know why you think there is such greed in a little old lady who put a portion of the life savings she has in her retirement fund in Berkshire Hathaway getting the dividends she expects and desperately needs to pay her bills.
Good sign.It is interesting to note that a number of BH "suits" who were initially put in charge over BNSF segments have been removed in favor of "rail" people over the past year.
Whenever you see someone in the business world do a takeover of a business that is not in or at the least closely related to their business and living in similar economic realities, and then dump their management in favor of their own, treat it like the redneck joke when the guy says, 'Here, hold my beer and watch this." Back way up. In other words, if you have stock in either one, dump it fast because a complete screw up is coming.Good sign.It is interesting to note that a number of BH "suits" who were initially put in charge over BNSF segments have been removed in favor of "rail" people over the past year.
Hehehe... In my line of work, I believe the term is "Charlie Foxtrot" (no offense, Charlie! :giggle: )7(6) is waiting at Interbay for train 8 to leave SEA. Both trains will need to back up, since one of the main lines in the tunnel is closed for track work. The conductor announced that the technical term for this is a 'kerfuffle,' although I suspect he had another term in mind.
BH doesn't really have a "business" per se other than being a holding company. BH already owned an incredibly diverse portfolio of companies before acquiring BNSF, from See's Candy to GEICO. BH originally, before Buffett, was textile manufacturing company. Buffett went heavily into insurance, then into anything that was profitable, undervalued and well-managed in Buffett's and Munger's analysis.Whenever you see someone in the business world do a takeover of a business that is not in or at the least closely related to their business and living in similar economic realities, and then dump their management in favor of their own, treat it like the redneck joke when the guy says, 'Here, hold my beer and watch this." Back way up. In other words, if you have stock in either one, dump it fast because a complete screw up is coming.Good sign.It is interesting to note that a number of BH "suits" who were initially put in charge over BNSF segments have been removed in favor of "rail" people over the past year.
Zypher: I think you have it right. I was mainly commenting on Montana Mike's statement. My knowledge of BNSF is relatively limited. with that related to operations to being about a once a month passenger on the San Joaquin trains, where their ability to move a heavy volume of traffic over a mostly single track line is fairly impressive.Buffet's approach has always been to let the existing management run the company, stand back, and leave it alone. Part of their acquistion strategy is that they evaluate the management in place and consider that management part of the assets they are buying. I know BNSF's management was left in place. BH itself has a tiny, tiny staff, deliberately, and really doesn't have the capacity or the desire to dig in and closely run any of it's acquired companies. It doesn't have very many "suits".Whenever you see someone in the business world do a takeover of a business that is not in or at the least closely related to their business and living in similar economic realities, and then dump their management in favor of their own, treat it like the redneck joke when the guy says, 'Here, hold my beer and watch this." Back way up. In other words, if you have stock in either one, dump it fast because a complete screw up is coming.Good sign.It is interesting to note that a number of BH "suits" who were initially put in charge over BNSF segments have been removed in favor of "rail" people over the past year.
So this talk about BH interfering with BNSF isn't consistent with Warren Buffett's MO. Not to say it isn't true, I know no details here, but it is certainly inconsistent with Buffett's philosphy and track record and makes me wonder about that theory.
One thing that is generally expected is that every concern owned by BH take care of its own capital needs. Getting money from BH happens, but it is more the exception than the rule. BNSF not getting additional funds from BH beyond what it had access to on its own, and prioritizing accordingly, rightly or wrongly, I would believe.
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