XTRA

Acquired in 2001, XTRA is a leading lessor of over-the-road trailers and intermodal equipment.

Business Model

XTRA operates a large fleet of trailers that it leases to trucking companies and railroads. It is a capital-intensive business where scale and fleet management are the primary drivers of success.

Berkshire Acquisition

• Manager: Lew Rubin.
• Context: The acquisition grew out of Buffett's familiarity with the leasing industry and his desire to deploy capital into businesses with tangible assets and steady, if cyclical, cash flows.
• Integration: XTRA's headquarters were in St. Louis, adding to Berkshire's growing presence in the Midwest.

Quotes

"XTRA is a leading lessor of over-the-road trailers... We have great confidence in Lew Rubin." — 2001 Letter