Saturday, April 30, 2011

25) which companies will do best/worst inflation

best will be ones that have lowest capital needs, See's (since we
bought dollar fell 85%),sees sells 75% more lbs of candies by 10x
revenue and it didn't take too much cpaital. Anyone who can increase
prices wihtout heavy CAPEX.

Utilities are more like bonds, you need to build generators, bond like
investment, not going to do well in inflation like bonds wont do well.

CM - capital intensive business RR like ours and our utilities are
best in the world

WB - our RR, govt has talked about high speed rail for $43B in
California, projections go up over time, we paid $43B for 2200miles of
track, 1300 bridges, 600 locomotives (not sure on numbers) but used
that comp to value rr

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