CNBC commentator Jim Cramer recommends that investors buy Berkshire Hathaway and railroad stocks.
Warren Buffett’s Berkshire acquired Burlington Northern Santa Fe in November for $26.3 billion.
And last week, Berkshire joined the Standard & Poor’s 500 Index.
“I’m a buyer of the guy’s company, I happen to love the railroads,” Cramer said on the air.
“Now that he’s clearly over-weighted in rails, I want to buy them even more.”
Cramer has been bullish on the rails since his show “Mad Money” began in 2005.
“The rails are a great oligopoly,” he said. “They basically divided up the nation. You can pretty much put through price increases all the time. . . It’s such an efficient way to ship goods that they can take rates up. I like every single one of the rails.”
Congress’ efforts to restrain rail price increases are likely to fail, Cramer says.
He particularly likes Norfolk Southern and Union Pacific.
“Norfolk Southern has reported some pretty amazing things. Union Pacific’s got a lot of upside from here.”
Many investors agree with Cramer on Berkshire Hathaway. Now that the “B” shares have split 50 to 1, they are more affordable for individuals.
Joel Nath, a 25-year-old accountant, told The Wall Street Journal that he has wanted to buy Berkshire since he began investing.
The split put the B shares — “Baby B's” — in his price range. So he bought nine at $73 per share.
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