Shares & Derivatives
Pricing power
By A Pen Quotes  •  April 18, 2015
“The single most important decision in evaluating a business is pricing power,” Buffett told the Financial Crisis Inquiry Commission in an interview released by the panel last week. “If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business. And if you have to have a prayer session before raising the price by 10 percent, then you’ve got a terrible business.” (read here)
I reckon the ability to raise price is closely related to how strong the company’s moat is. I have previously written a post on business moat. (read here) Of course if the business moat here is about driving costs down and being a low-cost leader, then pricing power may not be that relevant (in fact raising price will be contradictory to the strategy). Interestingly, Straco has recently announced that their Aquariums will adjust ticket prices ......
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By A Pen Quotes
Hi, I am a typical guy born in 1976. You can call me ‘T’. Family: I have a lovely wife and 2 kids (a boy and a girl). To me, they are the best things that happened in my life. Work: I’m working full-time in the construction industry. Interests: I like to swim, draw and read up on financial articles. I have started a Youtube channel on sketches. Do check it out here.
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