Norfolk Southern Corporation
Thesis
Norfolk Southern is another railroad stock that Tweedy, Browne bought during the market downturn, reflecting their strategy of investing in strong companies with recovery potential in the transportation sector.
Did it work?
worked
confidence: high
The long thesis on Norfolk Southern as a strong company bought during a downturn with recovery potential clearly played out: the stock returned +593.6% over roughly 18 years (~11.5% annualized price appreciation, before dividends). This far exceeds typical market recovery expectations and validates the value/recovery thesis over the stated long-term horizon.