Warren Buffet, one of the most successful investors of all time and the world’s second richest man, believes the Transition story.
He hasn’t actually said so, but yesterday he put his money where his head is and announced his biggest investment ever: $26bn to buy the second-biggest railroad in the USA.
The reason he is doing this is to make money.
And the reason he believes he will make money (lots of it) is because he believes rail travel is going to become much more important as road and air travel decline.
The Financial Times called it “a bold effort to make up for lost time” and said the deal “dwarfs previous deals by Berkshire [Hathaway]“. The Daily Mail story is here.
Previously Warren Buffet had called the railways “terrible” and “lousy for investors” so he must have seen some significant research to change his mind.
We can’t afford to spend as much on research as Warren Buffet does, but we do know that as oil becomes more expensive and the drive to cut carbon emissions grows so rail travel will become the only option for long distance transport over land.
And we know that the longer we delay preparing for what is coming, the harder the catch up is going to be.
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