Broker Check

Class 2, Part B

We continue our #financialliteracy course by discussing the highlights of some of the good businesses that Warren Buffett owned in 1983.

homework Notes:

  • Buffett’s purchases of See’s Candies, Nebraska Furniture Mart, and The Buffalo News in 1983 – and whether and how those were good businesses.
  • How See’s Candies taught Buffett about the power of good brands and of buying “wonderful businesses at reasonable prices” vs. buying “poor businesses at wonderful prices” and how this was a major transition in his career (one that led directly to investments in Coke and Apple, for example).
  • We explored revenues and profits and the income statement.
  • We learned about Mrs. B, the obstacles she faced, and the Nebraska Furniture Mart.
  • How The Buffalo News was a great business until creative destruction destroyed the economics for most local newspapers.

want full course materials or HAVE A QUESTION? REACH OUT TO US!   

EMAIL: john@kraeutlerfinancial.com
PHONE: (973) 867-1387

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