You Can’t Fit a Railroad in the Cloud...and Buy and Hold Works!

The Dow Transports are at all-time hights today. It really is all ‘ball bearings‘.

High fives for the railroads and Warren Buffett!

Woot for the truckers!

Only the government and Post Office could screw up such a layup of a trend. The post office only lost $15 billion last year.

Take a look at this beauty of the chart I created on Ycharts in like 5 seconds (shameless investor):

FDX Total Return Price data by YCharts

In 1998 when I started my hedge fund, I had an ILX machine for stock quotes and a Motorola Startec. Amazon was coming public and it was obvious to me that the trade was long Fedex and short Amazon. Fedex would make all the money and Amazon would be bled dry. Obviously I had my ass handed to me. It was the smartest big loss I ever took. I would have gone bankrupt within 6 more months.

Amazon and Fedex ($FDX) have made magic for their investors. They did so for the customer as well. While we weep about our Apple losses and the end of the world, step back and think about your timeframe. Why did you invest. Buy and hold still works if you catch big enough trends, great companies, great leaders and ride out big drawdowns. It’s not easy and it is not for the weak.

Congrats to all the great transportation entrepreneurs and investors. Amazing day indeed.