Warren Buffett thinks this investment will be his firm's key...
Warren Buffett thinks this investment will be his firm's key asset in 100 years, while Cathie Wood calls it a 'bad idea'
This dynamic between the two was on full display last week after Berkshire Hathaway released its annual letter to shareholders, which touted a sector that Wood see's no future in: railroads.
Buffett called his firm's ownership of the Burlington North Santa Fe Railway one of its "four giants" that has a promising future ahead despite it being an old-economy business that can trace its roots back to 1848.
"BNSF continues to be the number one artery of American commerce, which makes it an indispensable asset for America as well as for Berkshire. If the many essential products BNSF carries were instead hauled by truck, America's carbon emissions would soar," Buffett said in his annual letter.
BNSF Railway, which is the largest railroad in America by revenue, reported record earnings of $6 billion in 2021. And Buffett expects that record to be continually broken for many years into the future.
"I'll venture a rare prediction: BNSF will be a key asset for Berkshire and our country a century from now," Buffett said.
But Wood's Ark Invest sees the railroad business differently. Ark in its Bad Ideas Report called it a "bad idea" that investors should avoid as it is ripe for disruption.
That disruption, according to Wood, will be driven by the adoption of autonomous electric trucks that will "compete cost-effectively with freight rail and will offer better, more convenient service."
The potential convenience and cost effectiveness of autonomous electric driving trucks should help reverse the market share gains and pricing power railroad companies have gained from truckers since the early 2000s, according to the report, leading to the potential value destruction of $400 billion in fixed assets.
"The combination of electric and autonomous technology will increase productivity and lower the costs of trucking dramatically," the report said. Wood expects autonomous semi-trucks to reduce the cost of trucking by 75% to 3 cents per ton-mile, "undercutting rail prices with the help of lower electricity and maintenance."
Wood expects the transition from rail to autonomous trucks to happen within the next four to nine years, according to the report.
![Warren Buffett thinks this investment will be his firm's key asset in 100 years, while Cathie Wood calls it a 'bad idea' [No Dollars]Warren Buffett and Cathie ...](https://ussnsimg.moomoo.com/1646643473038-70042952-android-org.png/bigmoo)
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Positive Millionaire : Berkshire Hathaway and Warren Buffett were meant to both to be in the today's economy cradle singing lullabies rocking their competitors to sleep.While sticking it to baby bottle
nurturing their wealth Lady Liberty this morning gave America 
the high chair to sit in while keeping its audience on Wall Street wearing bibs to bid on cash rocket 
flights. 
Positive Millionaire : MooMoo on Up $tocks Today and Warren Buffett way on paying it in Full while his competitors can't simply afford to keep up so they put their stocks on layaway. Ouch they say as they pinch more then an inch on their donut waistline of a muffin top,refusing to stop themselves from eating their lower bid wages.while Warren Buffett Stock's Go outrageously High putting a target
on his competitive caps as Millionaires watch the clock 
and bid like never before.They say a Whimsical Up Stocks Up we want to live Warren Buffett Billionaire way. 
Positive Millionaire : Good Morning Warren Buffett says to his competitors that he will show them no relief, he will soar high in the sky with the George Jefferson's of today's technology heads in medias Direction. While his competitors still remain in the Stone Age saying that they are not worthy of Warren Buffett. So they remain in the Stone Age saying that they are only living the Flintstone life with low bids to no bids.$
SOARMANOP Positive Millionaire:
SOARMANOP Positive Millionaire:
SOARMANOP Positive Millionaire: getit
Positive Millionaire : Warren Buffett Hitchcock's matinee plays today on Wall Street slashing prices with Freddy Krueger claws. As Spider-Man stocks climb up Wall Street walls packing a wallop of a punch
hitting the competitors of Warren Buffett Square, INC. in the face until their bids have no place. 
