Warren Buffet could invest in Lionel Trains

Classic Toy Trains Forum
1

Warren Buffet’s Berkshire-Hathaway has acquired the BNSF and at one of the meetings someone set up an O Scale/O Gauge model railroad exhibit comprised of all Lionel Diesels and rolling stock.

Here is are links to photos of him in front of an all Lionel Trains set-up

http://www.corbisimages.com/Enlargement/Enlargement.aspx?id=42-25046705&tab=details&caller=search

http://www.corbisimages.com/Enlargement/Enlargement.aspx?id=42-25046302&tab=details&caller=search

Lionel has had some technical and manufacturing problems in China, causing more delays in the products finally being released.

If Berkshire-Hathaway got financially involved with LIONEL they could bring the manufacturing back to the USA and produce models of the most modern prototypes for S Scale, Traditional O Gauge, and O Scale that are all technically sound when released from the factory.

Andrew

2

Andrew,

And maybe, the darn, costly products will last as long as ‘Pre’ and ‘Post’ War items, due to ‘Good Ole’ Fashioned American Workmanship!’

Ralph

3

I really don’t see it happening but on the other hand Lionel is producing some boxcars here in the US but I think thats assemble only the accual molding is being done in china but I may be wrong on that last part I do know there being assembled here in the U.S.ofA.

4

RT,

That is a good sign, that Lionel is assembling them here in the U.S. of A.

Now, for a complete process of manufacturing the trains here, would help us!

Ralph

5

6

Thanks for relinking the photos, Rob. I would have attempted it, but I was uncertain if I was allowed.

Andrew

7

I wonder who owned the layout?

8

Warren certainly has the money to invest in Lionel, but would he have the good sense?

9

I was thinking, what does he need a layout for if he has the real thing. Then I remembered that he lives in Omaha - UP territory.

10

I wouldn’t worry. At the rate things are going the UP will soon own the BNSF too. Talk about monopoly.

11

Buffet’s purchase of BNSF wasn’t about trains per se. It was about cash flow, return on investment, growth potential in a niche market place.

To remain consistent with your metaphor It would be more to Warren’s investment style to have bought Sanda Kan from J.P.Morgan when the company became available (and in so doing take control of 50% of the world wide toy train production). Until Lionel opens its factory in NJ, the company (Lionel) will be nothing more than an over leveraged importing, marketing & distribution operation completely dependent on low cost China producers. That’s hardly a viable long term business model. Now Kader & MTH are different stories …