How to Buy Railroad Stock

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.



About the Author

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.