The Motley Fool Discussion Boards

Previous Page

Investment Analysis Clubs / Foolish Collective


Subject:  Re: 101: Industry dynamics : Pricing power Date:  5/8/2005  9:43 AM
Author:  psychoinvest Number:  38263 of 46922

So yes, Buffett has immense pricing power, but doesn't actively exercise it to influence the dynamics of a particular industry or company.

I would say he has NO pricing power. He has less than I do as an individual investor. I can buy stock in microcaps all day long. I can pick up stocks that are thinly traded and are at rock bottom prices. I can walk away from a transaction where I practicaly stole the shares (they are sometimes that cheap) and no one will ever take notice. Buffett said (so I have heard) that he could easily bring in 30% returns IF he were only managing a few million dollars. Buffett has done well inspite of , not beause of, his vast amount of capitol to invest.

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us