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stefano xc's avatar

Well obviously you have not read the report in details as far as the BNSF results. If you look at the railroad operating costs are lower by $441 m compared to last year. Labor cost are up 4.7% which is likely in line with inflation. It is true that the year before Labor cost were up 11.9% in line with Revenue growth. Overall, in 2023 the lower profitability of the railroad is essentially due to the lower revenues level by $1729 m. You can check the number on page K-43 of the 10-K. I do not want want to speculate here, but from Buffett comments' it seems that BNSF is not as profitable as the average public competitors. The labor cost is not the most significant issue here. To be honest, I was a bit disappointed to read Buffett' comment about labour cost and then look at the numbers that, in my humble opinion, tell another story.

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Kevin Worthley's avatar

Regarding the hedge fund managers - “ All animals are equal, but some are more equal than others” -George Orwell

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