Chapter 604

Data show that the cost per ton of freight transported by train is 1 gallon of diesel per 500 miles, and its fuel consumption efficiency is three times higher than that of car transportation and 15 times more efficient than airplane transportation.

The only ones that can be more efficient than trains in transportation are large ships and container ships.

The problem is that it is impossible for them to go ashore, and freight in inland areas ultimately has to be transported by train.

Although the United States has the most complete aircraft and airport system in the world, its aviation industry is highly developed, with 664,500 pilots, 7,628 commercial aircraft, 211,749 general aviation aircraft, and approximately 99 million annual takeoffs and landings. Among the total 19,636 airports, there are 14,556 private airports and 5,080 public airports, ranking first in the world in all aspects of data.

But carriers and high-end goods can be transported by airplane, but some low-end and large-volume goods cannot be transported by airplane, right?

For example, if the steel in the Cleveland area needs to be transported to California to be processed into auto parts. If air transportation is used, no one in California can afford the large amount of steel shipped by air unless it is special steel.

Even the world's largest cargo plane, the Antonov An-225 Mriya, also known as the An-225, can only transport up to 250 tons of supplies at a time.

A normal train has a carrying capacity of 60 tons, and the trains transporting goods usually have between one and sixty cars. If the locomotive is powerful enough, it can sometimes even be added to 100 cars.

Calculated, the load capacity is 3,600 tons or 6,000 tons, which is higher than the 250 tons of An 225.

This does not take into account the huge gap between the two sides in fuel consumption and economy.

Therefore, in terms of affordable cargo transportation, as long as human technology does not have the sudden support of the Zentraedi people, inland areas will still have to rely on the support of the train and railway system for a long time.

Especially when the United States has a vast territory and a relatively small population.

For the transportation of affordable goods, we must rely more on trains and railway systems.

This means that the seven major railway groups have a very strong presence in the United States with their huge operating cost advantages.

It is they who rely on old broken locomotives and the American railway network that has been repaired or even not repaired for more than a hundred years to support the country's freight logistics system.

This is why Abel has been eyeing them for a long time and has been quietly buying their stocks. So when Buffett also became interested in them, he discovered that Abel had already become one of the major shareholders in the U.S. railroad industry without the world knowing it.

In fact, it was not unknowing, because Abel did not deliberately hide it.

Morgan, the real overlord of the railway system, had discovered his little trick a long time ago.

It's just that Abel's actions were very scattered. He buys a little of this company and a little of that company, even though he has invested tens of billions of dollars in the past two years.

But the shares worth tens of billions of dollars are scattered among more than a dozen railway companies (not just the big seven), so they are not particularly conspicuous.

Morgan, who firmly controlled Amtrak and Union Pacific Railroad, turned a blind eye.

After all, this kind of thing is very common in the United States. Morgan himself also owns a part of Smith Financial shares (exchanged with each other), as well as many Smith Media shares bought on the stock market.

Cross-shareholdings are all too common in the United States.

This kind of peace has a prerequisite, that is, Abel has not revealed his true ambition for the railway system.

If, like Buffett, he wants to directly own one of the railway groups.

It would be impossible for Morgen to tolerate it any longer.

They will definitely take action, which is normal.

But now Old Warren hasn't come over yet, and Abel, who hasn't discussed it carefully with him, hasn't decided whether to challenge Morgan in this area now.

The main reason is that the old giants and overlords are not vegetarians. Although everyone is in harmony on the surface, secretly there is no less infiltration and little tricks between each other.

Just like Abel is secretly acquiring stocks of railway companies, he is also constantly strengthening his voice in the energy field.

Morgan and Rockefeller are not blind or stupid, of course they are doing similar things.

Otherwise, why would the stock price of Smith Media, a mere media company, rise so exaggeratedly?

With a market value of more than 300 billion US dollars, this is almost the total stock market value of the other top ten media companies in the United States, except for Smith Media itself.

Smith Media is indeed strong, but it cannot be this strong.

Therefore, the reason supporting its stock price to rise so wildly is, in addition to Abel's golden brand name and its own excellent performance support.

Also because behind the scenes, not only Morgan and Rockefeller, but many people on Wall Street were also silently "helping".

These people are not related to Abel, and many of them have been robbed of their interests by Abel. Of course, their "help" must be enclosed in double quotation marks.

Well, in fact, since Smith Media went public, people have been trying to increase its stock price.

Why do they want to help Abel work hard to sell Goldsmith Media stock?

The first is to cut leeks, this is the main purpose. The ultimate goal is to trick retail investors and small institutions into taking over the business, similar to a Ponzi scheme, and directly cut off a big one.

Smith Media's plate is big enough, and Abel's reputation is big enough.

Once the game is successful, the profits are astonishing.

This is the main purpose.

The second is Smith Media, which is the only one of the companies created by Abel that is currently listed.

If he succeeds, he will be able to make a lot of money, but it will also weaken Abel's immortality in the capital market and affect Abel's dominance in the U.S. stock market.

Therefore, Morgan and Rockefeller, including many people on Wall Street, are tacitly helping to sell Goldsmith Media stocks.

Some smart retail investors and small institutions can also see it.

Those who have strong self-control have withdrawn long ago, and those who have weak control or can't see it all think that they will not take over in the end.

When there is an avalanche one day, you will only have yourself to blame for being stupid.

This kind of thing is actually very common on Wall Street and is relatively routine.

Not that everyone united to deal with Abel Smith.

If one day Abel's Smith Financial and several other core industries also go public, then all companies will be similarly attacked.

That is the real big offensive battlefield,

Otherwise, it would just be common Wall Street behavior of you cheating me and I cheating you. It is a normal and daily Wall Street behavior.

After all, the world's financial market is so big, and it's impossible for everyone to fight outside all day long. Internal fighting between each other is actually the mainstream of Wall Street.

So you acquire the shares of the company under my name, I acquire the shares of the company under your name, and you go short and I play against you. This is really a pure daily routine on Wall Street.

Abel has been buying up energy companies and quietly buying shares in railroad companies.

It is considered normal business behavior, so Morgan and Rockefeller can tolerate it.

But if he has his mind set and clearly wants to take over a giant like the Seven Railway Groups, then the situation will be different.

So after hanging up the phone, Abel called Smith Intelligence Group.

He needs them to calculate and see if they can win one of the seven major railway groups by fully cooperating with Buffett and the Oilers before Morgan reacts.

Whether it is the Kansas City Southern Railway or the Burlington Northern-Santa Fe NS, they are both a very good choice.

However, Abel actually prefers Burlington Northern-Santa Fe NS because the area covered by the Burlington Northern Santa Fe railway network will become one of the most important oil producing areas in the United States in the future.

Nearly 70% of the shale oil in the United States is almost there. It will be profitable in a few years when shale oil development technology is perfected or oil prices are high.

The Burlington North-Santa Fe NS railway network will increase its turnover by at least 50% due to the large energy transportation demand.

The development potential was much better than that of the Kansas City Southern Railroad.

In a parallel time and space, Buffett also tried to enter the railway system more than ten years later. At that time, what he wanted to acquire was the Burlington Northern-Santa Fe NS, not the current Kansas City Southern Railway Company.

The reason is because of this.

Now it is just ahead of schedule, and the main target is not the Burlington Northern-Santa Fe NS, but the Kansas City Southern Railroad.

In the evening, what Abel didn't expect was that Old Warren's way of doing things this time was not at all as slow as his age should be.

In the evening, the old guy called Abel and said that he had arrived in Washington and wanted to meet Abel.

Abel was returning to his parents' home in Washington with little Laura, and the family was preparing to go out.

Buffett was very urgent, so Abel had no choice but to let little Laura and her parents take the children to the White House first, and he would go there by himself later after meeting Buffett.

Tonight, there is also a banquet in the White House, but it is a private banquet.

As the commander-in-chief, George hosted a banquet for himself and some close friends of the Bush family.

Yesterday was a public party, but tonight is a real gathering of our own people.

Abel's motorcade set off to meet Buffett. By the time the two met, the sun had already set.

At this moment, the whole of Washington was shrouded in orange sunset as if covered with gold.

Located in the InterContinental Pier Hotel in Washington, D.C., the decoration is very modern and very exquisite. Inside the African Caribbean concept restaurant Kith/Kin.

Abel was eating curry lamb kebabs with hummus while listening to the soft words of Buffett, the chairman of Berkshire Hathaway, who was sitting across from him.

"...We can definitely acquire Burlington Northern-Santa Fe NS and Kansas City Southern Railway Company at the same time! Once we successfully acquire them, we will be able to compete with anyone in the railway system!"

"I have asked Charlie to calculate that based on the current market value, even if a premium of about 30% is added, we only need to pay about US$115 billion to get more than 90% of the shares of these two companies!"

"The third and fifth largest railroad groups in the United States will become the largest railroad group in the United States after their merger."

"Dear Abel, I think we can definitely give it a try! Especially if it succeeds, it will be of great help to your agricultural company, supermarket group, and even energy group."

"As you said, it is better to have some of this kind of thing in our own hands to make us feel at ease. So, dear Abel, what do you think?"

Warren's voice was passionate and sonorous, unlike the one he had just landed at Dulles International Airport half an hour ago.

However, what disappointed Buffett was that Abel did not respond to him immediately, but instead focused on Charlie Munger next to him.

"Charlie, since my first investment cocktail party in New York and the two meetings at McDonald's in Los Angeles, this is our third meeting. Good evening, are you interested in coming over to work with me? I promise to provide you with better treatment than Warren's."

Buffett didn't expect Abel to poach his own wall in front of him. The old man slapped the table with dissatisfaction and shouted, "Hey, what's going on! You actually want to poach Charlie in front of me! I'm here I'm telling you about the railway!"

"Haha~ I'm listening, but that doesn't stop me from being very optimistic about Charlie and wanting to work with him!" Abel smiled and looked at the somewhat "angry" Buffett.

"You're dreaming! If you really dare, then I will send people to kidnap your two Davids and Robert!"

Buffett "blown his beard and glared", looking like an old child glaring at Abel.

Abel acted rogue, "Okay, it's settled! Let's change!"

"You! You guy..." Buffett became angry.

Charlie Munger, who was being fought over by the two men, smiled and said nothing, and did not join in the bickering between the two elders at all.

Charlie Munger is very self-aware, although he is indeed capable and has always done a good job.

But it is impossible for Abel to really dig him, and it is absolutely impossible for Buffett to let him go.

He knows so many secrets of Berkshire Hathaway that it can even be said that he is half of Berkshire Hathaway.

If he dares to leave any day, he will definitely "disappear" or "commit suicide" at home.

As the industry with the most executives jumping off buildings in the United States every year, Wall Street executives have always been a high-risk profession.

And Charlie Munger also knew that Abel couldn't really reuse him.

In the financial industry, trust has always been more important than ability.

It can range from tens of millions to hundreds of millions, billions or even tens of billions of dollars.

How can such a large amount of funds be handed over to managers to manage without enough trust?

But Charlie was somewhat happy, because this was the olive branch extended to him by Abel Smith.

Although it was a joke, there were few jokes in the world worthy of Abe Smith.

Charlie Munger feels that this is a strong proof of his worth.