SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
Recommended by:
ekimaa
From: bruwin1/19/2016 5:06:44 AM
1 Recommendation  Read Replies (1) of 77155
 
Yeah, well, ... 'micro', 'macro', 'shmakro', 'shmikro', ... whatever....

The thing is, you buy a Resource based company, you know that there's a built in RISK of the international price of its commodity taking a dive or, hopefully, a surge.
That's the thing about (a)'COMMODITY TYPE BUSINESSES'.

Management of EXXON, BP, Mobil, VALE, etc.., however competent and experienced, can do very little when world oil or iron ore prices fall through the floor from $100 to $30, etc ....

However, people will still be buying and drinking Coke, Pepsi, Budweiser, etc..,
They will still be brushing their teeth, shaving, etc.., etc.., via P&G/Gillette, Colgate, etc...,
They will still have their kids and even adults watching Disney, etc.., etc...

In other words they will be still be buying from (b)'CONSUMER MONOPOLIES' long after we're all pushing up daisies.
Consumer Monopolies control the prices meted out to the merchants, so business moves along nicely. The "price fight" that takes place after that between merchants is their problem.

Yes, maybe, according to some, Buffett hasn't got his 'macro' right every time, but he sure as hell knows the difference between (a) and (b) above, and when to buy more of (b) when "Mr. Market" gets 'neurotic' and 'panic stricken' ....

"you pays your money and you takes your choice" ....
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext