TRANSFORMING THE RAIL YARD
Visiting a busy Ohio train yard, Andrew, an equity analyst, considers the infrastructure and technology that could soon automate rail transportation.
What’s a company worth?
More specifically, how do you determine the durable value of a business in the transportation industry without knowing firsthand the unique challenges in that sector?
If you’re sitting in an office on Wall Street you might see the world of transportation that can be at odds with reality.
Being outside the echo chamber enables our analysts to maintain an ‘independence of thought’ that is rare.
A hundred and fifty years ago railroads helped expand this nation to the West, back when people couldn’t imagine running out of space.
Today, railroads have nearly reached the limit of physical growth. There simply isn’t room to build new tracks where they need to be.
I’ve always felt that investing is 20% science and 80% art. The science part is easy. You don’t even have to leave the office to know a business by the numbers.
The market tends to worry about things it doesn’t fully comprehend. Research is the antidote. Coming out here, seeing the infrastructure firsthand, talking with the people behind the numbers creates a different picture.
Driverless cars and trucks have been making headlines recently. But the technology for automated trains is actually moving faster.
At T. Rowe Price, we put the mosaic of information together to create a more complete picture of a business’ value.
Once I know what a business is truly worth, we can make better-informed investment decisions that can directly benefit our clients.
That’s why I go beyond the numbers.
“Before hitting the road, I spend time studying maps of every city I visit. Knowing where things are spatially and how places have developed over time helps me envision the future of transportation.”
Airlines, railroad and trucking
M.B.A., University of Chicago Booth School of Business
Volunteers for various organizations and coaches his son’s basketball team.
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This material is being furnished for general informational purposes only. The views and opinions expressed are those of the investment analyst at the time of production and are subject to change without notice. There is no guarantee that these views will come to pass, and may differ from those of other T. Rowe Price group companies and/or associates. Information and opinions are derived from proprietary and non-proprietary sources deemed to be reliable; the accuracy of those sources is not guaranteed.
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