Friday, 15 Jul 2016
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Buffett's Favourite Indicator

What is Buffett's favourite indicator?

Warren Buffet is a legendary investor and one of his favourite indicators is the amount of traffic running on the railways. Much like investors use the Baltic Dry Index to assess the amount of global bulk commodity trade, Buffet looks at US rail activity. This probably explains why Berkshire Hathaway is a big investor in railways. Unfortunately the numbers from the Association of American Railroads are not good.

Buffett believes that the predictive power of this indicator is a true guide to the state of the US economy. Unfortunately for him the indicator is down 7.8% on a four week moving average.

Figures from

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