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Warren Buffett mba talk | part 4: share of mind

"You want to do everything in the world to ensure that the experience of giving that gift leads to a favorable reaction"

In Part 4, Warren Buffett responds to this question: How to determine a fair price to pay for a business? He responds by talking about great companies that create 'share of mind'. These are companies that create a positive perception in the minds of consumers. He then eludes to great businesses such as See's Candy, which he bought in 1972 for $25 million and Disney, which he knows has done a great job creating this moat.

These are some of his brief comments.

We will not buy into any business that we are not terribly sure of.

We do not expect extremely high returns.

We look for untapped pricing power. (See's Candy example)

The Walt Disney Company - He says it is difficult to compete with the brand that Disney has created around the world. These are the types of companies you want to own. Simple enough strategies. I think right now, it is at a bargain price. (Last Price: $20.16 @ November 12th, 2008.








Related Posts
Warren Buffett MBA Talk | Part 1: Integrity
Warren Buffett MBA Talk | Part 2: Smart Choices
Warren Buffett MBA Talk | Part 3: Choosing Businesses
Warren Buffett MBA Talk | Part 4: Share of Mind
Warren Buffett MBA Talk | Part 5: Circle of Competence
Warren Buffett MBA Talk | Part 6: Macroeconomic Factors
Warren Buffett MBA Talk | Part 7: Inactivity & Dividends
Warren Buffett MBA Talk | Part 8: Diversification
Warren Buffett MBA Talk | Part 9: Market Cap
Warren Buffett MBA Talk | Part 10: Ovarian Lottery

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