The Hidden Reason Why Buffett Wants BNI
In making the announcement Buffett confidently claimed that rail would play a big role in the recovery of the economy. What he did not say was that this was a bet on the U.S. dollar.
In fact, the U.S. dollar is the primary reason for why Buffett is making this move. With the dollar plunging, manufacturing in this country becomes much more attractive to foreign importers.
How do we get those goods overseas? The ports and shipping will play a role no doubt, but so, too, will rail. BNI will be a huge beneficiary of increasing manufacturing activity and the transport of goods from factory to port.
It is a very simple formula, and making a bold investment in advance of the actual trend is what this deal is all about. Yes, it is a bet on American business, but it is more about a bet on American business selling its goods overseas.
Are there other businesses beyond the rails and BNI that will benefit from this emerging activity? Here are five manufacturing firms that Buffett’s BNI will be transporting en masse as the dollar continues its decline.
Article printed from InvestorPlace Media, http://investorplace.com/2009/11/weak-dollar-stocks/.
©2014 InvestorPlace Media, LLC