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Author: Cogitarius Big gold star, 5000 posts Old School Fool Home Fool Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 46839  
Subject: Re: 101: Industry dynamics : Pricing power Date: 5/8/2005 5:20 AM
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Wayne : The absolute King of "Pricing Power" technique is of course Buffett

Thanks for that interesting example. In money management, Buffett probably has one of the widest moats around due to his unique 'Wait, Buy, Hold' approach to buying something he's interested in. (25 years for BUD!!)

However, in the context of Porter's model, his 'pricing power' is more passive than active. From what I've read, he waits for the price to be right, rather than negotiates the price down to his desired level. In fact, according to this post by FocusFocus, in buying businesses he avoids companies not available for sale or not ready to name a price:
http://boards.fool.com/Message.asp?mid=22432174

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