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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (60583)	3/21/2018 9:53:18 PM
From: E_K_S	Respond to of 78774

Buffet never wanted to own a company that was based on one or more commodity inputs where there was not some significant value added. That also included barrier to entry (ie a moat), brand value. So in many ways you present a valid argument to stay away from food stocks unless they get super cheap (ie sell at/near tangible BV). FWIW, I have been buying some utilities but am in a bit too early. Still have some order in for D. EKS

To: Spekulatius who wrote (60583)	3/22/2018 9:19:14 AM
From: robert b furman	Read Replies (2) \| Respond to of 78774

Hi Spek, Good point about big margins inviting private brands. P&G used to defend all competition with price wars and lots of advertising till market share was gained - then increase margins through less discounting till you lose market share. That MO has not worked for quite a while. Brand management has been made much harder by private labels. In a local hardware store "Menards" sells Cheerios and other cereals as price leaders for much lower prices than grocery stores. Ditto: tide pods,paper towels, toilet paper and cleaning materials. Lots of competition out there! No quick answer out there - grind out the private labels with price erosion! Perhaps a niche product is a better place to hide? Bob