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See's Candies is Warren Buffett’s ‘dream’ investment

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Re: See's Candies is Warren Buffett’s ‘dream’ investment

#111

Post by fny »

daniel-cussen wrote: post #53
01100011 wrote: post #23

I'm pretty sure the peanut brittle has crack cocaine in it. Avoid at all costs unless you want to spiral into a never ending addiction. Sees is able to transform cheap ingredients into a premium product. It has a strong brand and pricing power. These are good things to have in a company. Still though, it's a luxury good and not something I'd want to own as we head into a recession. Own things people need, not things…

The strong brand, yeah. That's what Warren Buffet looks for most. Really means you're getting a good deal, so he looks for things people psychologically have ingrained are good deals, and then makes them higher-priced deals. Maybe still good deals but I don't know. Because a win-win deal can be made into a win-lose deal simply by negotiating.

This is actually something you'll notice in grocery stores now. The higher price has moved far higher (2x) while the discount price has moved 20%. They're prepping everyone for higher prices if needed.

Re: See's Candies is Warren Buffett’s ‘dream’ investment

#112

Post by jdlshore »

shrubble wrote: post #41

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…

A key quote from the article supports what you're saying:

"Warren and I raised the prices of See’s Candies a little faster than others might have. There are actually people out there who don’t price everything as high as the market will easily stand. And once you figure that out, it’s like finding money in the street.”

Whether that's a reason to admire Buffet, or dislike him, I'll leave to the reader. The impression I have of Buffet is that's not a romantic; he's out to make money in a sustainable, long-term way, and is unapologetic about it.

Re: See's Candies is Warren Buffett’s ‘dream’ investment

#113

Post by parenthesis »

lotsofpulp wrote: post #106
diego_moita wrote: post #71

> 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…

And yet Buffett decided to become business partners with them: https://finance.yahoo.com/video/warren-buffett-kraft-heinz-p...

And has probably regretted it.

Re: See's Candies is Warren Buffett’s ‘dream’ investment

#114

Post by parenthesis »

_zoltan_ wrote: post #69
daniel-cussen wrote: post #57

Earlier quoted context omitted.

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

If you set up a bottling plant, he'll sell you the additive but won't tell you what's in it.

Re: See's Candies is Warren Buffett’s ‘dream’ investment

#115

Post by skippyboxedhero »

diego_moita wrote: post #71

> 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…

That isn't their strategy.

The largest part of their strategy has been cutting central costs (which are, not coincidentally, obscenely large at consumer goods companies). That has been their strategy since the early days.

The cost-cutting that you are seeing across the industry started because 3G exposed the fact that a lot of companies were running with incredible amounts of fat. But during that time, you have also seen massive increases in competition across the sector due to changes in consumer demand that has led to brand-destroying behaviour.

Re: See's Candies is Warren Buffett’s ‘dream’ investment

#116

Post by taffer »

ldoughty wrote: post #64
HomeGear wrote: post #39

Earlier quoted context omitted.

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?

Then the competition moves money from profit markets to undercut you... making it impossible to compete... your competition subsedize the costs and effectively sell for 20% below cost until you agree to sell or close shop

How can they sell vitamin c at 10x the bulk price and at the same time undercut you?

Re: See's Candies is Warren Buffett’s ‘dream’ investment

#117

Post by mbesto »

hackernewds wrote: post #92
pgrote wrote: post #66

Earlier quoted context omitted.

>How does one even know if the Vitamin C is Vitamin C? Good question. For the last few years I've subscribed to Consumer Lab. They have a rigorous testing program for vitamins and supplements. https://www.consumerlab.com/about/

Is there one similarly for sunscreen and lotions for toxicity?

Yes! https://www.ewg.org/sunscreen/

Re: See's Candies is Warren Buffett’s ‘dream’ investment

#118

Post by DrewRWx »

frakkingcylons wrote: post #98
noduerme wrote: post #77

Earlier quoted context omitted.

When were Popeye's or BK "quality" brands? I don't remember them getting any worse since RBI bought them.

I feel like BK used to be a lot better back in the 2000s but that could just be fond memories.

My guess is it is because that is the era when BK really leaned into the McDonalds sized chip on their shoulder.

So, kinda like the petty thrills that the "console wars" had.

Re: See's Candies is Warren Buffett’s ‘dream’ investment

#119

Post by DrewRWx »

kaycebasques wrote: post #107

Here's a little history family history related to See's. My great grandpa was a chocolatier. Had his own store in San Francisco in the 30s. WWII hits and chocolate gets rationed. He has to close down his store. See's stays open because they have contracts with the military to provide chocolate for soldiers. See's hires my great grandpa as chocolatier.

The military-industrial complex strikes again!

Re: See's Candies is Warren Buffett’s ‘dream’ investment

#120

Post by reaperducer »

bombcar wrote: post #103
noduerme wrote: post #77

Earlier quoted context omitted.

When were Popeye's or BK "quality" brands? I don't remember them getting any worse since RBI bought them.

Before the fast food brands revitalized Burger King (and somewhat Carl’s Jr.) were famously a bit of a cut above in quality (and price) but now everyone works on an on-demand model and the difference is harder to notice.

Before the fast food brands revitalized Burger King (and somewhat Carl’s Jr.) were famously a bit of a cut above in quality

Yep. And it put one of my relatives on the unemployment line.

He was responsible for importing cheap meat from Australia and New Zealand for Burger King and a bunch of prisons.

In the early 90's there was a brief wave of "made in USA" pride that swept America, and Burger King changed suppliers and advertised "Made with all American beef!"

That cut my relative out of the picture, and his prison clients weren't enough to make up for the loss, so he lost his job.

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