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Strategies & Market Trends : Buffettology

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To: cfimx who wrote (2739)	1/18/2001 8:46:58 PM
From: Moominoid	Read Replies (1) of 4690

Thanks for comments: Bricks don't change, work boots don't change, wall board doesn't change, paint doesn't change, uniforms don't change, candy doesn't change, insurance doesn't change... The product didn't change in work boots but lots of the other economics of making them has so that most mass-market shoes are made in developing countries today. Insurance distribution is changing (and Berkshire is doing well because of that). Fashion changes in soft drinks (see KO), fast food, candy and even shoes - not as fast as PCs of course. Another thing never dicussed is how American Berkshire is in the age of multinationals, though with General Re I guess there is a more international dimension. Another good type of business to be in is one where the product is only sold to the rich (or relative rich) or early adopters. As income or other characteristics are distributed in a bell shaped curve (if skewed) the growth rate is very high. Moving from 1 to 2 % of the population is a 100% gain. The jets thing fits that model. PCs and other tech (like mobile phones) fit that model till saturation was reached. David

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