Global Railroad Index Statistics
Top 5 Companies by Market Cap 
Railroad companies represent a compelling investment theme despite the run-up in the stock prices of major U.S. players in the industry such as Warren Buffett favorite Burlington Northern Santa Fe (BNI), which Berkshire Hathaway owns nearly 64 million shares for an 18% stake . Railroad companies have pricing power as increased demand for the fuel-efficient transport of energy and agricultural commodities is combined with limited near-term ability to increase rail transport capacity due to the labor and capital intensive nature of the business.
As illustrated in the accompanying tables, the performance of the Global Railroad Index was driven primarily by the four domestic rail giants (Union Pacific, Burlington Northern, Norfolk Southern, and CSX), resulting in a 13.6% market cap-weighted gain for the 37-company index versus a slight loss of 0.6% on an equal-weight basis over the past year. The index includes companies over $200 million market caps which are involved in rail transport, infrastructure, and railcar/locomotive manufacturing. The four major domestic rail companies also comprise over 30% of the stock holdings in the iShares Dow Transports ETF (IYT), reflecting both the growing importance of rail transport to our economy and the rise in the stock prices of these companies.
As illustrated in the accompanying tables, the performance of the Global Railroad Index was driven primarily by the four domestic rail giants (Union Pacific, Burlington Northern, Norfolk Southern, and CSX), resulting in a 13.6% market cap-weighted gain for the 37-company index versus a slight loss of 0.6% on an equal-weight basis over the past year. The index includes companies over $200 million market caps which are involved in rail transport, infrastructure, and railcar/locomotive manufacturing. The four major domestic rail companies also comprise over 30% of the stock holdings in the iShares Dow Transports ETF (IYT), reflecting both the growing importance of rail transport to our economy and the rise in the stock prices of these companies.
$31.52 (09/14/08)
