The stock market is flush with investment opportunities but shouldn't be viewed as a get-rich-quick scheme. Investing in railroad stock as part of a long-term approach can be an effective way to create a balanced portfolio.
How to Buy Railroad Stock
Research the publicly traded railroads and select which companies in which to invest. Class 1 railroads Burlington Northern Santa Fe Railway (NYSE: BNI), CSX Corporation (NYSE: CSX) and Union Pacific (NYSE: UNP) are available for public trade, among other major competitors in the industry. Many short line railroads are fully owned by holding companies, but some, like Freightcar America, Inc. (NasdaqGS: RAIL), invite you to invest.
Contact a broker or sign up for a self-trading stock website. Discuss the implications of investing in an industry like railroads.
Invest only the money you can afford to lose. Rail is generally regarded as a steady market, especially as consumers and worldwide businesses become more fuel conscious.
Track your stocks to consider adjusting your positions in railroad shares.
References
- Railroad Stock, Railroad Investing and Financials
- CSX. "CSX System Map." Accessed July 8, 2020.
- Norfolk Southern. "System Overview." Accessed July 8, 2020.
- Burlington Northern Santa Fe. "System Map." Accessed July 8, 2020.
- Union Pacific. "Union Pacific System Map." Accessed July 7, 2020.
- Canadian National Railway Company. "Maps & Network." Accessed July 8, 2020.
- Canadian Pacific Railway. "CP North America Railway Map." Accessed July 8, 2020.
- Surface Transportation Board. "FY 2017 Annual Report," Page 68. Accessed July 8, 2020.
- Statisa. "Leading North American railroads in 2019, based on operating revenue." Accessed July 8, 2020.
- Kansas City Southern. "2019 Annual Report," Page 2 of PDF. Accessed July 8, 2020.
- Ryan Ellis. "Letters, Power Lines, and Other Dangerous Things: The Politics of Infrastructure Security," Page 112. MIT Press, 2020.
- Association of American Railroads. "Overview of America’s Freight Railroads," Page 2. Accessed July 8, 2020.
- Association of American Railroads. "Railroads and Coal," Page 1. Accessed July 8, 2020.
- Association of American Railroads. "The Environmental Benefits of Moving Freight by Rail," Page 1. Accessed July 8, 2020.
- Harvard Kennedy School. "Transportation safety over time: Cars, planes, trains, walking, cycling." Accessed July 8, 2020.
- Environmental Protection Agency. "Regulations for Emissions from Locomotives." Accessed July 8, 2020.
- Environmental Protection Agency. "Regulations for Greenhouse Gas Emissions from Commercial Trucks & Buses." Accessed July 8, 2020.
- Bureau of Transportation Statistics. "What the Transportation Services Index, Dow Transportation Index, and Cass Freight Index Tell Us." Accessed July 8, 2020.
- Association of American Railroads. "Rail Traffic Trends: 2019 Reflections & 2020 Prospects." Accessed July 8, 2020.
- Railroad Workers United. "Unions in 2015 Round of National Bargaining." Accessed July 8, 2020.
Writer Bio
Glenna Parks' work has appeared in "Missouri Life" magazine, "Marshall Democrat-News," "Central Collegian," and the Union Pacific and Amtrak employee publications, "BNSF Today" and "BNSF Railway." Parks received a Bachelor of Arts in communications from Central Methodist University in Fayette, Mo., in 2007.