Warren Buffett News: Better Buy Right Now – Berkshire Hathaway Inc (BRK.A) or American International Group Inc (AIG)

WARREN BUFFETT WINS AGAIN: Train Traffic Is Going Through The Roof (BusinessInsider)
EUROPEANS have long pitied Americans for their rotten passenger trains. But when it comes to moving goods America has a well-kept freight network that is the most cost-effective in the world. It is, however, a capital-intensive business. Since the Staggers Act of 1980 deregulated the sector (see chart), rail companies have invested about 17% of their revenues in their networks. This is about half a trillion dollars of private money over the past three decades. Even the American Society of Civil Engineers, which howls incessantly (and predictably) about the awful state of the nation’s infrastructure, shows grudging respect for goods railways in a recent report.

Coke Stock: One of Warren Buffett’s Biggest Investments Might Be His Worst (Fool)
Global beverage titan The Coca-Cola Company (NYSE:KO) has for a long time been one of Warren Buffett’s largest holdings at Berkshire Hathaway Inc. (NYSE:BRK.A). Buffett began purchasing Coke stock in 1988, and the stock saw tremendous gains for the next decade, leading some observers to call Coca-Cola one of his greatest investments. Yet the stock’s performance since 1998 has been decidedly mediocre. Coke stock has joined in the recent market rally, more than doubling off its Great Recession low. That said, I’m skeptical that the company will be able to grow its bottom line enough to justify its generous P/E ratio of 20.7. Coca-Cola may therefore continue its long run as one of the biggest dogs of Buffett’s portfolio.

Wells Fargo Does Right By Buffett (Fool)
When Warren Buffett was just beginning to build Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK-B) stake in Wells Fargo & Company (NYSE:WFC) back in the early 90’s, he gushed over the bank’s top managers, Carl Reichardt and Paul Hazen. In a short “how do I love thee, let me count the ways” tribute in Berkshire’s 1990 shareholder letter, Buffett highlighted three things he particularly liked about the leadership of Reichardt and Hazen: …Reichardt and Hazen no longer run Wells Fargo. Nor does Dick Kovacevich, who followed Hazen. But it appears that current CEO John Stumpf may be carrying on in the same tradition — and is likely making Mr. Buffett very happy in the process.