Thread by @trengriffin

"If you've got the power to raise prices without losing business to a competitor, you've got a very good business. And if you have to have a prayer session before raising the price by a tenth of a cent, then you've got a terrible business."

Warren Buffett variety.com/2020/digital/n…

2/ Charlie Munger: “There are actually businesses you will find a few times in a lifetime where any manager could raise return enormously just by raising prices—and yet they haven’t done it. They have huge untapped pricing power they’re not using. That's the ultimate no-brainer."

3/ Charlie Munger: "Disney found that it could raise prices a lot and the attendance stayed right up. A lot of the great record of Eisner and Wells came from just raising prices at Disneyland and Disneyworld and through video cassette sales of classic animated movies."

4/ Buffett: "We like buying businesses with some untapped pricing power. When we bought See's for $25 million, I asked myself, 'If we raised prices by 10 cents per pound, would sales fall off a cliff?' The answer was obviously no."

Does a price rise cause management agony?

5/ Buffett: "Sears Roebuck voted [our textile business] supplier of the year. They were wild about us. The thing was they wouldn't give us another half a cent a yard because nobody had ever gone into a men's clothing store and asked for a pin-striped suit with a Hathaway lining."

6/ "When you get down on your knees, call in all the priests and rabbis and ask: "Just another half cent a yard'. And they say 'We won't pay it'. It's just night and day. The ability to differentiate yourself by charging a different price is what makes a great business." Buffett

7/ "The struggle of a vendor is to establish special product qualities. This works with candy bars, but doesn’t work with sugar. In many industries, differentiation simply can’t be made meaningful."

"You can't say Apple has no price sensitivity, but it’s very limited." Buffett