Sees Candies Lesson
The canonical inflection point in the Buffett-Munger evolution: the 1972 acquisition of See's Candies by Berkshire, in which Buffett paid a price that would have been hard to justify under Grahams framework for a business whose pricing power and brand durability allowed it to compound modest incremental capital at returns no cigar-butt position could have matched. The qualitative judgment about durable competitive advantage was the analytical load-bearing element; the price-cheapness analysis was secondary.
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