See's Candies is Warren Buffett’s ‘dream’ investment
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Re: See's Candies is Warren Buffett’s ‘dream’ investment
#2I guess being Warren Buffett's "dream" investment isn't a bad marketing pitch either :)
Re: See's Candies is Warren Buffett’s ‘dream’ investment
#3Unfortunately the small candy company has a very reasonable business model, and generates stable revenues.
Generating stable revenue is the worst thing that can happen to a company, because now your company can (and will!) be priced according to multipliers on fundamentals.
A pie-in-the-sky business model with 0 launched products will fetch a much higher price on the markets
Re: See's Candies is Warren Buffett’s ‘dream’ investment
#4Unfortunately the small candy company has a very reasonable business model, and generates stable revenues. Generating stable revenue is the worst thing that can happen to a company, because now your company can (and will!) be priced according to multipliers on fundamentals. A pie-in-the-sky business model with 0 launched products will fetch a much higher price on the markets
Silicon Valley HBO did a skit on the importance of ‘no revenue’ https://youtu.be/BzAdXyPYKQo
Re: See's Candies is Warren Buffett’s ‘dream’ investment
#5Unfortunately the small candy company has a very reasonable business model, and generates stable revenues. Generating stable revenue is the worst thing that can happen to a company, because now your company can (and will!) be priced according to multipliers on fundamentals. A pie-in-the-sky business model with 0 launched products will fetch a much higher price on the markets
a concept of "cancer" comes to mind when you describe that, somehow..
Re: See's Candies is Warren Buffett’s ‘dream’ investment
#6No post body was provided.
Re: See's Candies is Warren Buffett’s ‘dream’ investment
#7For an entire book’s worth of this article, I highly recommend Lowenstein’s biography of Buffet.
Fantastic, detailed read and I had zero interest in the man beforehand.
Re: See's Candies is Warren Buffett’s ‘dream’ investment
#8Unfortunately the small candy company has a very reasonable business model, and generates stable revenues. Generating stable revenue is the worst thing that can happen to a company, because now your company can (and will!) be priced according to multipliers on fundamentals. A pie-in-the-sky business model with 0 launched products will fetch a much higher price on the markets
What’s unfortunate. It looks like someone who valued it appropriately has it and the business is in great shape. This is the whole thing: you can just beat everyone by picking better and running it appropriately. If you can’t find a path to the first, I really can’t believe you can find a path to the second.
Re: See's Candies is Warren Buffett’s ‘dream’ investment
#9I guess being Warren Buffett's "dream" investment isn't a bad marketing pitch either :)
In his letter to the CEO he expressed skepticism that the myth of a geographically unique business had anything to do with the real value of their products, so in a sense it's the opposite of a marketing pitch.
Re: See's Candies is Warren Buffett’s ‘dream’ investment
#10No post body was provided.