Buffett Bets on the Railways

Ignoring seemingly better growth opportunities in emerging markets like Brazil, China & India, Warren Buffett has just made his largest investment yet - in a US railway!

Q&A - What are commodities and how are their prices determined?

A commodity is a product for which there is demand and which is supplied without any clear difference in product quality or standard. 

An important feature of a commodity is that its price is determined as a function of its market as a whole – by the interaction of market demand and market supply.