Union Pacific (UNP)

Union Pacific (UNP) is one of North America's premier transportation companies, operating a vast railroad network that crisscrosses 23 states in the western two-thirds of the United States. Think of it as one of the main arteries of the American economy, a steel highway for the essential goods that power modern life. Founded by an act of Congress and signed into law by President Abraham Lincoln in 1862, Union Pacific has grown from its historic role in creating the first transcontinental railroad into a modern logistics behemoth. It hauls everything from agricultural products and automobiles to chemicals, coal, and consumer goods. For investors, UNP represents a classic example of a business with a powerful and enduring economic moat. Its immense, and practically impossible to replicate, network of tracks gives it a dominant competitive position, making it a subject of keen interest for those following a value investing philosophy.

Union Pacific isn't just a company; it's a piece of living history and a critical component of the U.S. supply chain. The company’s iconic yellow locomotives travel over 32,000 miles of track, connecting major West Coast and Gulf Coast ports to eastern gateways, and even linking up with Canada's rail systems and serving all six major gateways to Mexico. This isn't your grandfather's chugging steam engine; it's a highly efficient, technology-driven logistics network. The sheer scale and necessity of its services mean that if you buy a car, eat fresh produce, or use electricity from a coal-fired plant, there's a good chance Union Pacific had a hand in getting those goods or raw materials to you.

In the world of business, few things are better than being a monopoly. The next best thing? Being part of a duopoly. In the western United States, Union Pacific’s only direct, large-scale competitor is Burlington Northern Santa Fe (BNSF). This competitive landscape