Canadian Pacific Railway Limited (USA) (NYSE:CP)

CAPS Rating: 3 out of 5

A transcontinental carrier operating in Canada and the U.S. The company's rail network serves the principal centers of Canada, from Montreal to Vancouver, and the U.S. Northeast and Midwest regions.


Player Avatar globalsailor (51.68) Submitted: 11/30/2009 8:37:41 PM : Outperform Start Price: $46.33 CP Score: +265.86

This is the lowest proportionally valued railroad company outside of the United States. Okay, it has exposure to the dollar, but it isn't too much, it has a reasonable dividend, low PE ratio, and I don't like China too much.

Here's the kicker though, if any country is ever serious about carbon dioxide emissions there is no more energy efficient way to transport goods and people than by rail. This is why Buffett likes railways. He doesn't care about whether it's better to be in solar or wind but he knows that the economies of scale that come with the railways are our best chance for efficiency.

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