Facebook / See & # 39; s sweets
- Warren Buffett often uses Valentine's Day to explain why See & # 39; s Candies is a "special" company.
- The billionaire says people associate the boxes of chocolates with romance.
- Therefore, See & # 39; s can raise prices and customers won't switch to cheaper sweets.
- "When you go to your wife or girlfriend on Valentine's Day – I hope they're the same person – and say," Here's a box of candy honey, I accepted the low bid, "Buffett said in 2017 , "It loses a little (impact) as you go through this speech."
- You can find more stories on the Business Insider homepage,
Warren Buffett loves to use Valentine's Day to explain why See & # 39; s Candies is his "dream business".
The billionaire investor and CEO of Berkshire Hathaway says people associate chocolate boxes with romance. Therefore, See & # 39; s can rate them based on their emotional value instead of their production costs.
See & # 39; s in Berkshire doesn't have to worry about rivals undercutting and stealing its customers as people don't go for cheaper candy if their relationships could suffer, argues Buffett.
"If you go to your wife or girlfriend on Valentine's Day – I hope they're the same person – and say," Here's a box of candy honey, I accepted the low bid, "Buffett said to shareholders in 2017, losing a bit (effect ) if you go through this speech. "
Warm feelings and wild loyalty have allowed See’s to raise its prices from less than $ 2 a pound in 1972 – when Buffett bought the company for $ 25 million – to more than $ 20 today. By charging higher fees, the pastry chef has earned over $ 2 billion before tax for Berkshire over the years.
Buffett called it "the first outstanding business we bought" at the Berkshire Annual General Meeting in 2017.
"We decided about See & # 39; s Candies that it was going to be special," he added. "Fortunately we were right."
Buffett has often highlighted the brand's rare strength and dedicated customer base.
People had "brought a box to a girl on Valentine's Day and she kissed him … See & # 39; s candies meant being kissed," he told business school students at the University of Florida in 1998, "If we have that in people's minds, we can raise prices."
"If you give your girlfriend a box of sea chocolates on her first date and she kisses you … we own them," said the investor in Becoming Warren Buffett, an HBO documentary.
"We could raise the price of the boxes tomorrow and you will buy the same box," he added. "You won't fool around with success."
(tagsToTranslate) Finance (t) Invest (t) Warren Buffett (t) Berkshire Hathaway (t) See