
Originally Posted by
lunchbox
By type of business, I'm not saying what it actually does. People are not going to stop building homes with brick and hardwood floors or living in manufactured ones, nor are they going to stop wearing underwear, eating candy, chewing gum, wearing jewelry, and using electricity.
He did not invest in anyone of these specifically based on it's own merit, he's buying value in consumer goods that have been around and will continue to be around. Keep in mind with total ownership/control he eliminates a lot of risk that we as shareholders would take.
In reverse. Furniture is an excellent business to be in regardless of location, the margins are just that good. I bet his loactions are somewhat of a local monoply, just like DQ's are (or at least were up till recently) the only game in many small rural towns.
All insurance companies have one thing in common, and it is the fundametal rule that made him what he is: you can make more investing with other people's money, than just your own. He's into insurance for the cheap capital.
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