Dos anyone have some good tips on which transportation companies would be a good buy? Transportation seems like a very stable sector to buy into. We always need goods to be transported by either the road, rail or air, and it seems to be recession proof.
Why is it recession proof? Does the overall amount of goods being shipped decline a lot during recession? If recession hits will companies who buy this transportation service not try to save money by calling other transportation companies to see if they are willing to undercut the current one's prices? Also road and air are very much dependant on the price of oil. Rail is a good idea as it's cheap, fast and runs on electricty but also has some downsides. I know a few people who invest similar to me own Canadian National Railway so that might be worth a look.
There is no such thing as recession-proof, just industries that suffer less than others. Trucking is probably a safe bet until self-driving cars become mainstream. Google is making impressive strides with that, so that may be sooner than we think. I know that Swift does a lot of trucking for Wal-Mart, which needs deliveries like clockwork. If I had to pick one to put my money on, I'd go Swift but I don't know how inclined I am to put any of my money in that basket. Why exactly are you interested in merchandise transport?
I've owned Amerco (UHAL) for many years. I also like oil and gas related transporters like Buckeye Partners, Kinder Morgan, and Aegean Marine.
