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Author: WayneOwl Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 46802  
Subject: Re: 101: Industry dynamics : Pricing power Date: 5/7/2005 12:54 PM
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I found your analysis very interesting, Cogitarius, but I noted one glaring omission.

The absolute King of "Pricing Power" technique is of course Buffett himself made possible by Berkshire's bottomless pit of money. I believe I saw Him quoted once as saying He didn't care if an investment makes money over the first few years. Of course not. It is a deliberate strategy while He increases market share.

Have you purchased camera film, razor blades, batteries or soft drinks lately? After most competitors have been driven out of the market by lowball pricing ( leaving perhaps only slightly more than duopoly industry structures ), all of these consumer goods are now priced at rip-off prices. When do you ever see any of them at really "sale prices". You don't.

I am surprised He didn't go after BUD much sooner. I expect that a stake in a large liqour/wine market leader next. Then over the next 3 to 5 years you can watch the strategy in action.

M2CW
Wayne
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