Transportation stocks are on the move!
Ever heard of the… Dow Jones Transportation Average? Probably not. However, it is basically the lesser known, possibly estranged relative to the Dow Jones Industrial Average…you know, but for transportation. Interestingly enough, the index has gained 9% on the year which is slightly better than the DJIA which is up 6% on the year.
You should invest in transportation… because even Warren Buffett does it. If Warren Buffet does it, you do it. Okay? Berkshire Hathaway has stakes in UPS, United, American, Delta, and Southwest. Heck, Warren Buffett has even contemplated buying an airline and said he “wouldn’t rule out owning an entire airline.” Buffett even acquired railroad Burlington Northern Santa Fe for $26 billion back in 2009.
But not so fast… because high oil prices could hurt the transportation industry. Amazon also is investing in cargo freight airlines and experimenting with drones which could put a dent in transportation. Last but not least – trade tensions could drive demand down for imported goods. But for now, all is well for planes, trains, and automobiles…