Category: Value Investment

It’s a difficult time for investors. Europe is under the dark cloud of shaky government finances, while Chinese economy is either on the way to a hard landing or a short landing in the best case senario. On the other hand, the stocks are not expensive except the A shares in China. It’s the time to pick the right stock at good price. Life goes on, no matter what will happen temparary to the world economy. When it’s all over, a good company will grow stronger. And even over this uncertain period of time, they are keeping making more money and preparing for better time.

There is a big hoopla around Buffett’s most recent investment in North America’s largest rail company (by market capitalization): Burlington Northern Santa Fe (BNI, news, msgs). Suddenly railway companies become big stars around world. Any company related to railway got a rise on its price, even for the one not owning a single section of railway, on the Shanghai stock exchange. Well, a good investment for Buffett may not be a good investment for everyone. There are 2 reasons.