Hi all I would like to buy some railroad stocks. I I was thinking of KCS. I just like trains and want to have shares in a couple of them. I am not expecting to get rich I just want shares in a railway.
What railroads would you recommend investing in? I am not planning on putting more than a 1000 dollars in them. Thanks, Craig.
If you are interested in transportation stocks try a mutual fund. They level out the risk somewhat.
To save yourself the mutual fund managment fee you can also self invest…just divy up your money among the carriers you like. I own CN and CP stock and will probably purchase some US roads in the near future. I’m putting all of my money in railroads…[:)]
You would definately want to use a brokerage service that allows small odd lot purchases. There are a couple of those out there…the name Share Builder comes to mind, but it might not be correct.
Or, check with the companies, on their websites to see if they have direct stock purchases. You can directly purchase shares from the company, or their transfer bank at very low costs.
Good luck, with the market down it might be a good time to buy.
ed
I also recommend self investing. I bought some BNSF stocks last year and made some good money off the stocks when it went up to $94 a while back. In my opinion if it is a stable railroad that has good business practices then if you put your money in them for the long term your return will probably be fairly good. In my experience I have made more money buying railroad stocks and letting them sit, than letting my money sit in my bank account and get a tiny amount of interest.
If you are looking to keep the stock for the long run, I would recommend enrolling in the Dividend Investment Program, if the company has one. I know BNSF does and I imagine that other RRs would too. Once you are set up in that you can send money directly to that (any dividends will also go there) and not ever worry about broker fees again, since the company purchases the stock for you and keeps it in a special account in your name.
Of course, when (not if) you diversify, you would need to enroll in each DIP separately for each company.
Nathaniel:
I also have a number of drps. Some of the companies allow you to buy the stock direct without a broker (to set up the account). Other companies require you to send in a certificate of stock to establish the account.
It is a great idea to reinvest the dividends. Unfortunately CN doesnt allow it and sends a check quarterly.
ed
Any of the class I’s are good investments. You won’t see the stratospheric rise you might see in some of the fancy small caps or consumers etc. – but you won’t see the stratospheric drops, either. In my opinion, better long term than short term investments. And yes, I do have railroad stock in my portfolio – CN, BNSF, and NS at this time.
Good info. thanks guys. I think it would be cool to have stocks in railroads.
I know CSX has a Direct Invest service with, I think, Bank Of America office in NYC. You basically fill out a request and mail that and a check for about $50 or so and they set up your account and you do the rest.
JP
Try KCS for shares, you will then own shares in the Panama Canal Railway.