Greg Abel Says Every Point of BNSF Profit Margin Adds About $230 Million of Cash Flow for Berkshire Hathaway

Berkshire Hathaway's CEO Greg Abel is targeting significant margin improvements at BNSF railroad, stating that each 1% improvement in operating margin generates approximately $230 million in incremental operating cash flow. With current 34.5% margins and competitors operating at 38-40%, BNSF has substantial room for improvement that could potentially double its contribution to Berkshire's bottom line within five years.