Question: What types of businesses have the highest ROIC? Buffett: You could run Coca-Cola with no capital. There are a number of businesses that operate on negative capital. Great magazines operate with negative capital. Subscriptions are paid upfront, they have limited fixed investments. There are certain businesses like this. Blue Chip Stamps – it got […]
Tag: Coca-Cola
Buffett: Consumer Products and Share of Mind
Question: Could you explain a little more about the mind of the consumer and the nature of the product? And explain how you actually apply these concepts to find the companies with the best potential? Buffett: When you get into consumer products, you’re really interested in thinking about what is in the mind of how […]
Buffett Tells the History of Coca-Cola
Warren Buffett: Asa Canver back in the late 1880′s essentially bought the whole Coca-Cola company for $2,000, and that may be the smartest purchase in the history of the world. Then in 1889, a couple of guys from Chattanooga came along, and in those days soft drinks were sold over the counter, and they said […]
Buffett Quotes on Good Business
1. Good businesses are difficult to knock off Snickers has been the #1 candy bar for the past 40 years. If you gave me $1 billion to knock off Snickers, I can’t do it. That’s the test of a good business. You don’t knock off Coke or Gilette. Richard Branson is a marketing genius. He […]