Friday screencast: pricing power

abnormalreturns
March 18th, 2011

Why did Warren Buffett purchase Lubrizol? In a word, purchasing power. There are a number of other reasons including exposure to the twin trends of the emerging markets and fuel efficiency. In short, Lubrizol despite the fact that it is an industry largely unrelated to his other holdings it actually lines up as a prototypical Buffett holding. In addition Buffett likely acquired the company at a price below what would have occurred in an auction. This highlights the challenge facing any likely Buffett successor. In today’s screencast we look at another big Buffett deal.

Items mentioned in the above screencast:

Why Warren Buffett bought Lubrizol (LZ). (market folly)

Nine reasons Buffett bought Lubrizol. (ROI)

The boardroom magic of Warren Buffett. (Deal Journal)

Daily price chart of Berkshire Hathaway (BRKB). (Finviz)

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