Warren Buffett agreed to pay $4.5 billion to buy 60% of industrial conglomerate The Marmon Group. What did Buffett find attractive in Marmon and can you ride the billionaire's coattails?
Fast Money favorite Jon Najarian joins the panel for this conversation. Following is a synopsis of his main points.
Marmon is made up of over 125 companies, but investors can’t buy into it, explains Najarian. However, two sectors of the business are particularly attractive to me, and investors can “coat-tail it.” (In other words, can simulate Buffett’s play)
Marmon growth area: Transportation
Not only did Marmon build a state of the art railroad tank car production plant, explains Najarian, but they run a container leasing company in China.
Najarian’s Coat Tail Trades: FreightCar America (RAIL), The Greenbrier Companies (GBX), Trinity Industries (TRN), American Railcar Industries (ARII)