Buffett noted that the railroad business after World War II had 1.6 million people employed in the business, and it was a lousy, undercapitalized industry. Today, the rail industry has less than 200,000 employees, and the industry is much larger, more efficient and far safer. No one is claiming today that it would be better to run the railroads with 1.6 million folks. “Efficiency is required over time in capitalism.”
