No. of Recommendations: 3
What is important here is that Siegel is telling investors not to chase after hot new IPO's or try to find the next great thing, instead they should look for companies with a moat, pricing power and repeat customers. Companies that buy back shares and pay dividends can be rewarding for shareholders.

Philip Morris is not the only company that can raise prices. You don't have to be addicted to a product to keep buying it after prices are raised. The trick is to find companies that can charge high prices and raise their prices.
Buffett discovered that See's Candies could raise their prices and people kept buying them. Hershey's can raise prices, people keep buying their chocolate.
Starbucks can raise their prices, people keep coming back for their coffee.
Apple keeps inventing new products that people want and are willing to pay up for.
Colgate keeps developing new toothpastes that people want and are willing to pay up for.

I really don't care what Munger thinks of Siegel. Munger has a way with words doesn't he?
Siegel's predictions are not under discussion here.
Whether or not the investor reinvested the dividends is not the point here.
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