Industries whose products are or deliver small(ish), physical goods of some complexity - Coke, razor blades, food, low cost electronics / manufactured goods ($25 or less) - are invulnerable to the 'Net, because the delivery cost of the physical goodies to individuals requires mass distribution channels. It needs Sam's / WalMart's, not FedEx / USPS.
Products subject to substitution by the 'Net - newspapers, paper mail, photography, broadcast TV, magazines, advertising, intellectual property sales (travel, real estate, financial services, brokerage) - will have their franchises eroded as infrastructure and human practice with the 'Net accumulate. Think decades / generations, rather than months / years, in the US. Off shore, it'll take longer.
Maybe the question should be, which of Buffett's holding will NOT be negatively impacted ? |
