Money and Finance
- Investing In Sustainably Advantaged Businesses - Twst Interview With Larry Coats Of Oak Value
We define good businesses as those that we believe have the ability to produce predictable and growing excess cash. The predictability component is defined to a large extent by the company’s positioning relative to customers, suppliers, competitors...
- Warren Buffett's 2007 Shareholder Letter
Warren Buffett's 2007 Letter to the Shareholders of Berkshire Hathaway Inc.************Excerpt:-Let’s take a look at what kind of businesses turn us on. And while we’re at it, let’s also discuss what we wish to avoid.-Charlie and I look for...
- Fourth Pick In The Wmd Portfolio - Raven Industries
The more real they are, the more fun blogs are to follow. So in that spirit, rather than talking about ideas in the abstract I maintain a hypothetical portfolio to track ideas where I'll semi-regularly (and hypothetically) invest and track buying...
- Why Moats Matter
I read Why Moats Matter while on Martha's Vineyard. This felt especially appropriate. The moat concept that Morningstar pioneered is all about different kinds of structural competitive advantages. When you are on an island like Martha's Vineyard,...
- Dividend Compass Cup Match 1 - Coca Cola Vs Pepsi
Humans face many metaphysical questions - why are we here? What is the meaning of life? Also: Coke or Pepsi? In this first match of the Dividend Compass Cup, we'll attempt to answer the latter. The rules are straightforward, we run the two quality,...
Money and Finance
Notes from a Meeting with Warren Buffett on November 15, 2013 - By Dr. David Kass
A big thanks to Peter for passing this along. My Alma Mater, Coastal Carolina University, also happened to be one of the 8 universities that attended the meeting.
(11) You were the first person to use the term “moats” as competitive advantage. Morningstar has built on this. What do you think about Morningstar’s work on moats?
WB: I think they’re doing a great job. I came up with this term 40+ years ago because in capitalism, you have these economic castles. Apple, Microsoft, etc. Some have smaller castles. If you have a castle in capitalism, people are going to try to capture it. You need 2 things – a moat around the castle, and you need a knight in the castle who is trying to widen the moat around the castle. How did Coca-Cola build their moat? They deepened the thought in people’s minds that Coca-Cola is where happiness is. The moat is what’s in your mind. Railroad moats are barriers to entry. Geico’s moat is low prices. Every day we try to widen the moat. See’s Candies creates a moat in the minds of consumers. It is a more effective gift on Valentine’s Day than Russell Stover. See’s Candies has raised its price every year on December 26 for 41 years. BRK bought See’s Candies for $25 million in 1972. Today it earns $80 million. Richard Branson failed 10 years ago with Virgin Cola. Snickers has been the number one candy bar for 40 years.
- Investing In Sustainably Advantaged Businesses - Twst Interview With Larry Coats Of Oak Value
We define good businesses as those that we believe have the ability to produce predictable and growing excess cash. The predictability component is defined to a large extent by the company’s positioning relative to customers, suppliers, competitors...
- Warren Buffett's 2007 Shareholder Letter
Warren Buffett's 2007 Letter to the Shareholders of Berkshire Hathaway Inc.************Excerpt:-Let’s take a look at what kind of businesses turn us on. And while we’re at it, let’s also discuss what we wish to avoid.-Charlie and I look for...
- Fourth Pick In The Wmd Portfolio - Raven Industries
The more real they are, the more fun blogs are to follow. So in that spirit, rather than talking about ideas in the abstract I maintain a hypothetical portfolio to track ideas where I'll semi-regularly (and hypothetically) invest and track buying...
- Why Moats Matter
I read Why Moats Matter while on Martha's Vineyard. This felt especially appropriate. The moat concept that Morningstar pioneered is all about different kinds of structural competitive advantages. When you are on an island like Martha's Vineyard,...
- Dividend Compass Cup Match 1 - Coca Cola Vs Pepsi
Humans face many metaphysical questions - why are we here? What is the meaning of life? Also: Coke or Pepsi? In this first match of the Dividend Compass Cup, we'll attempt to answer the latter. The rules are straightforward, we run the two quality,...