Comments on: Great Businesses According to Buffett

By: Dividends4Life

Dividends4Life — Sat, 08 Mar 2008 15:20:11 +0000

Excellent read! Thanks for sharing it. I plan to include your article in my weekly carnival/article review Friday.

Best Wishes,

By: George

George — Thu, 06 Mar 2008 15:58:42 +0000

Thanks Nick! I’m honored that it made your post of the day.

alex - How does Freddie Mac have captive customers? I hate Labcorp as a customer, but maybe they are a low cost producer. I’ll have to check them out more closely.

Another duopoly worthy of being called a great business is Sotheby’s (BID). The only real competition for them is Christie’s.

To encourage more ideas, I’ll try to post a new great business here for every ideas submitted. Keep them coming…

By: Nick

Nick — Thu, 06 Mar 2008 15:42:10 +0000

Picked for post of the day at _________ matters.

By: alex

alex — Thu, 06 Mar 2008 11:58:54 +0000

IMHO Freddie Mac fits the bill. Unscalable Barriers to entry, high ROE, economy of scale, captive customers. They have the ability to borrow at lower cost than their competitors and match the time of their borrowing to the time of their loan.
Temporary market conditions have priced this company right.

Another company is Labcorp. They function in a duopoly. They have economies of scale.