Скачать с ютуб Warren Buffett on High Return on Tangible asset Vs irreplaceable hard asset with high return в хорошем качестве

Warren Buffett on High Return on Tangible asset Vs irreplaceable hard asset with high return

Warren Buffett on which business is better? High Return on Tangible capital business like Seas, Coke in an inflationary environment Vs irreplaceable hard asset with high return with pricing power like Railroad and hydro electric power. First group is superior Eg. Consumer product Very little capital to grow More volume to grow Eg. Your own earning ability, if you are an outstanding doctor or an engineer, your service will command more money in an inflationary environment, where additional capital is not required to grow. It is like Long lived real asset where additional capital is not required to finance inflationary growth. Worst business is business with tons of receivables and inventories Volume stays flat and price level doubles can be a bad asset. Ideal business: Seas Candy. Retails at $1.90 When We bought it, it was doing $25 million at 16 million pounds of Candy to now $300 million. $9 million tangible assets to do Revenue of $30 million and it requires $40 million tangible assets to do Revenue of $300 million. During that time, it has made $1.5 billion in Pretax Profit to us. If the price of candy doubles, we don't have Receivables to speak of. Inventories turns quickly. Limited amount of Fixed Assets. This is a great business to own during inflationary environment.