Warren Buffett’s "Dream Business"
Warren Buffett’s "dream business" is See’s Candies. In 1972 he bought the boxed-chocolate company for $25 million. The investor has made an over 8,000% return since. Buffett has hailed See’s profits, competitive power, staff, products, and minimal capital needs.
The company embodies Buffett’s investment philosophy of businesses with long-term competitive advantage, reliable cash flows and a customer-centric approach valuing quality over quantity.
See’s Candies Success Story
See’s was a legendary West Coast manufacturer and retailer of boxed chocolates, earning $4 million pre-tax yearly while using $8 million in assets. The company competes using quality ingredients prepared to “See’s Quality,” better than “top quality.”
Munger ran their West Coast business. See’s generates double or more every year than what Buffett paid. The story reminds us a company’s value can’t be quantified. By 2007, it had income of $82 million, three times what Berkshire paid 35 years earlier. Buffett installed management and said not to sacrifice quality. In candy and stocks, price and value differ.
Ownership of See’s Candies
What fast food chain does Warren Buffett own?
Who owns See’s candy now?