61–70 of 211 posts
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Or do your research with companies that have independently assess products
not very many people can afford to do their own research... lab tests for everything you buy?
I know I am "supposed" to like Warren Buffett, but frankly I don't; and this does show why I don't. Buffett buys a discretionary, almost a luxury item, store, and jacks up the prices well above the rate of inflation. The owner of LVMH does the same. This is not the same as a company that is advancing technology or building the same item, but for less money. I value the guy who runs the sriracha sauce company higher t…
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He's repeatedly explained that he doesn't invest in tech (well, until recently) because he doesn't understand it will enough, but has he ever told others not to invest in tech?
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You can't create any monopoly for generic drugs, by definition. Sure you can. If you're the dominant player, you can pay or buy out new entrants. Happens all the time in generic drugs.[1] [1] https://www.nytimes.com/2015/09/21/business/a-huge-overnight...
Sounds like the perfect start-up plan: just open a 50 bucks vitamin C store, and the dominant player will buy you out for $$$. Rinse and repeat for infinite money.
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You can't create any monopoly for generic drugs, by definition. Sure you can. If you're the dominant player, you can pay or buy out new entrants. Happens all the time in generic drugs.[1] [1] https://www.nytimes.com/2015/09/21/business/a-huge-overnight...
There has to be more to it. If not, a simple refusal to sell would allow you to move the market. If the sellout bundle is profitable enough, why doesn’t everyone start a generic drug company to be sold and retire rich?
It's the slow and steady increase in prices that made it so profitable. About 5x over inflation during Buffett ownership. This has happened to far too many items over the last few decades. Most of the things drugstores sell are cheap to make, but have steadily increased in price in the US over the last few decades. Vitamins used to be priced according to manufacturing cost. Slowly, the low-cost vitamins have been up-…
It's the slow and steady increase in prices that made it so profitable. About 5x over inflation during Buffett ownership. This has happened to far too many items over the last few decades. Most of the things drugstores sell are cheap to make, but have steadily increased in price in the US over the last few decades. Vitamins used to be priced according to manufacturing cost. Slowly, the low-cost vitamins have been up-…
>Vitamins used to be priced according to manufacturing cost. Slowly, the low-cost vitamins have been up-priced to match the expensive ones. Vitamin C is about $10/Kg in bulk, but about $100/Kg at a US drugstore. How does one even know if the Vitamin C is Vitamin C? There is no government agency that confirms supplements and vitamins are what they say they are, nor are there penalties. The only thing I have heard of i…
Good question. For the last few years I've subscribed to Consumer Lab. They have a rigorous testing program for vitamins and supplements.
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Or do your research with companies that have independently assess products
not very many people can afford to do their own research... lab tests for everything you buy?
It's the slow and steady increase in prices that made it so profitable. About 5x over inflation during Buffett ownership. This has happened to far too many items over the last few decades. Most of the things drugstores sell are cheap to make, but have steadily increased in price in the US over the last few decades. Vitamins used to be priced according to manufacturing cost. Slowly, the low-cost vitamins have been up-…
That's a very weird example - the majority of people buying Vitamin C at a US drugstore could just as well light their money on fire to no discernible difference in their health.
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I find that afordable luxuries are good in a recession. People still want to feel that they are buying something more than pure need, and a box of good chocolate or a Coke instead of tap water are more afordable that a tailored suit or an expensive car.
I replaced buying Coke with tap water, but with a special additive. Incredibly cheap. But it just tastes better than Coke, like why would I buy Coke now that I have water with that additive, Coke just tastes heavy and fattening now.
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That's a very weird example - the majority of people buying Vitamin C at a US drugstore could just as well light their money on fire to no discernible difference in their health.
Maybe they're buying it to adjust the acid balance in their homemade wines (like me)?