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Sunday, January 23, 2011

Why Buffett bought railway company?

Today just read a blog, the asset of railway companies depreciates in 20 years, that means they always need more money to replace retired assets, because of inflation.

My understanding, that's the huge barrier for new comers! It needs times of money to build a new railway company. The other hand, railway is highly dependable by economic activities. So it's really a good bid!

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