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Take The Train

Warren Buffett's been hopping aboard the railroads again, picking up an additional stake in Burlington Northern. Should you go along for the ride?

I think investors should go into the rails, says Guy Adami on CNBC's "Closing Bell". I like them as an alternative to agriculture stocks because I find the valuations in "ag" somewhat rich. Since freight trains transport crops they're a related play and more reasonably priced.

The rail companies I like in order of preference are Burlington Northern (BNI), CSX Corp. (CSX), and Kansas City Southern (KSU), he says. And you might want to steer clear of Union Pacific (UNP) at least for a while.

On a related note Adami says, if you want to play coal look at Joy Global (JOYG) as well as Peabody Energy (BTU) because they have mines in Australia which gives them strong exposure to Asia.

Symbol
Price
 
Change
%Change
BTU
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CSX
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KSU
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UNP
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