Building a Small Business That Warren Buffett Would Love—Finishing the Landscape
Put down your paintbrushes, take a step back, and observe the landscape we have just painted.
I Want to See a Consumer Monopoly …
A small business that Warren Buffett loves must take up retail space within the hearts and minds of consumers. For a small business owner, it is imperative to build a strong brand that is distinctive and different from the competition, otherwise consumers will just go across the street once the other guy lowers his gas prices. Remember, the core of a strong business is not a mystery nor is it a complicated mess. It is found in the wisdom of Warren Buffett, and it is found in the types of companies that he loves.
Folks have to have it: T-shirts.
A brand, not a commodity: Fruit of the Loom.
Folks have to have it: Food, soup, McNuggets, Snap, Crackle, Pop.
A brand, not a commodity: McDonald’s, Campbell’s, Kellogg’s, Hershey’s.
Folks have to have it: Liquids, water, juice, soda pop.
A brand, not a commodity: Coke, Pepsi, and … Coke.
Folks have to have it: The happiest place on earth.
A brand, not a commodity: Disney.
With a Strong Track Record of Earnings …
Past performance is not necessarily a guaranteed indicator of future results, but when it comes to building a small business that Warren Buffett loves, a track record of consistent and growing earnings is priceless. The small business with a hearty record of earnings is likely to continue producing ...