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Funny how that's the complete opposite of another celebrated investor: Jorge Paulo Leman from Brazil's 3G Capital Partners (Heinz, Popeye's, Anheuser-Busch, Tim Horton's, Bugger King, etc).
Their game is to buy brands with very strong customer loyalty and slash costs (and quality). In the long run they'll destroy the brand but until then will make enough profits to more than compensate for the investment.
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 has changed his stance recently, and now has billions in tech holdings, including a recent HP bet [1]. IIRC, Berkshire also has big stakes in Apple, IBM, and Nubank.
1 - https://thetechee.com/warren-buffetts-berkshire-hathaway-rev...
> Buffett cautioned Huggins to never sacrifice quality for profit. Funny how that's the complete opposite of another celebrated investor: Jorge Paulo Leman from Brazil's 3G Capital Partners (Heinz, Popeye's, Anheuser-Busch, Tim Horton's, Bugger King, etc). Their game is to buy brands with very strong customer loyalty and slash costs (and quality). In the long run they'll destroy the brand but until then will make eno…
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not very many people can afford to do their own research... lab tests for everything you buy?
Not you personally, but there can be third parties companies reviewing products
Warren Buffett seems to specialize in the kind of monopolistic sectors that many other countries have chosen to nationalize, as there really isn't any 'competitive free-market model' that applies - namely, the power grid and the the railroads.
Which country has a nationalized candy industry?
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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.
why not name the additive? I for one would like to know
> Buffett cautioned Huggins to never sacrifice quality for profit. Funny how that's the complete opposite of another celebrated investor: Jorge Paulo Leman from Brazil's 3G Capital Partners (Heinz, Popeye's, Anheuser-Busch, Tim Horton's, Bugger King, etc). Their game is to buy brands with very strong customer loyalty and slash costs (and quality). In the long run they'll destroy the brand but until then will make eno…
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The missing key concept here is "regulatory capture". In many industries, companies get enough money and power that they can afford to rewrite the laws to lock themselves in and put up a big barrier to entry to keep competition out.
There is no regulation in supplement selling, except for food safety. You can sell sugar branded as Vitamin C, and if your customers aren't going to sue you for false advertising or something, you won't have any problems. The prelegeri really is retail capture.
Sorry, I’m having trouble tracking down this term. Could you tell me what it means or what it means in this context?
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…
My understanding is that it's voluntary, but the equivalent of the QC that prescription medications undergo.
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Maybe they're buying it to adjust the acid balance in their homemade wines (like me)?
Then I'm sure you can get a kilo of the stuff from a supplier at a price much closer to bulk. That is not what they are selling in a US drugstore, however.