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If the US economy had an official cheerleader squad, we would no doubt see Warren Buffett hurrahing from the top of the pyramid. The Oracle of Omaha has dropped $26.3 billion to purchase Burlington Northern Santa Fe, effectively betting on the railroad industry as the “next big thing.”

For many Americans, railroads seem like a booming industry of yesteryear, but Buffett views the industry as a more green and efficient alternative to gus-guzzling semis for transporting goods. The billionaire businessman did his homework before handing over big bucks too, rattling off facts in an interview with USA Today. Buffett notes that Burlington Northern Santa Fe can move a ton of goods 470 miles using only one gallon of diesel and that each train can take 280 trucks off already-clogged US highways.

Buffett looks at the deal as a sensible long-term investment and believes it will produce “steady and certain growth” throughout coming decades.

What do you think about Buffett’s big billion dollar bet?

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