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Author: psychoinvest Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 46821  
Subject: Re: 101: Industry dynamics : Pricing power Date: 5/8/2005 9:43 AM
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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.
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