So I triggered on Canadian National Railway (CNI) last week. So why a railway and why Canadian?
1. Increased pricing can be passed onto the consumers.
2. Higher efficiency compared to diesel/gasoline powered trucks.
3. International hedge against the U.S. economic slowdown.
4. Canada's ports are closer to Asia and Europe.
5. Canadian $ has become more valuable than the U.S. $ in recent years.
6. Railroads are known to be a great recession hedges.
7. Increased energy prices can be passed onto the consumers.
Also, it doesn't hurt that Buffett has been investing heavily in the railroads. It's time for me to follow suit on this latest dip. So far so good!
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