From Buffett's vantage point, the railroad industry is absolutely essential to America's future prosperity given its unmatched efficiency in transporting goods over vast distances. However, he recognizes the myriad challenges railroading faces - from the massive ongoing capital expenditures required just to maintain operations to hiring enough workers willing to take on difficult and hazardous jobs.

Buffett sees how BNSF in particular has struggled since Berkshire Hathaway acquired it, with slipping earnings and margins compared to competitor railroads despite its strong geographic footprint. While largely unappreciated, he believes railroads like BNSF make an indispensable contribution by keeping America's commerce flowing reliably.

With smart long-term management, Buffett is confident icons like BNSF will remain vital assets for Berkshire and the nation for the next century and beyond.