rukawa Posted June 19, 2014 Share Posted June 19, 2014 I think it was Buffett who popularized the idea of investing in companies with very strong brands like Coke. But, Buffettistians tend to forget the reason Buffett even wanted to find companies with large moats...he was trying to resist the iron law of competition that inexorably destroys the competitive advantages of all companies in the long run. My view is that the rise of the brand name was caused by the scarce advertising spots possible with broadcast television technology and the scarce shelf-space of large chain stores. But brand names are dying due to the Internet, Cable Cutting and the infinite Shelf Space of e-commerce companies like Amazon. You no longer need huge advertising budgets to reach large numbers of people...think Angry Birds. And online reviews enable you to determine quality without a brand name to assist you. In this world, are brand names like Coke, Pepsi and Sony valuable anymore? How long is the life of a brand name? Link to comment Share on other sites More sharing options...
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