Subject: Re: Data Point: Railroads
I recall a quote from Warren Buffett during the purchase of BNSF that a ton of freight could be moved by rail from San Francisco to Los Angeles by a gallon of diesel. (~$2.50 to $3.50 at today’s WTI spot price)
This is confirmed by An AI inquiry…
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“Because a single gallon can move a ton of freight 470 miles, you could absolutely transport that ton all the way from San Francisco to Los Angeles on a single gallon of diesel—with nearly 100 miles worth of fuel to spare.
Buffett loved this metric because it perfectly illustrated a massive economic "moat" and a win-win for society:
Cost Efficiency: It is roughly three to four times more fuel-efficient than moving freight by truck.
Environmental Impact: If just 10% of the freight currently moving on crowded U.S. highways were diverted to rails, it would save over 1 billion gallons of fuel a year.
It's one of those classic Buffett insights where a single, simple data point completely reframes how you look at a giant, traditional industry.”
ciao