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Has Buffett invested in companies in packaging industry?


CafeB

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34 minutes ago, CafeB said:

If not, is there anything specific about packaging that might have made it unattractive to him, based on his stated preferences, rather than less attractive than other opportunities?

 

 

I don't know much about packaging, but it strikes me as a pretty moat-less industry.  

 

 

SJ

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Meryl Witmer, a Berkshire director who is also on the Barron's roundtable and renowned value stock picker, has in past put forth a thesis on Packaging Corporation of America, and at the time, was a top position of hers. You can read her thesis on Barron's if you dig it up. 

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  • 4 weeks later...
On 1/16/2022 at 1:15 PM, StubbleJumper said:

 

 

I don't know much about packaging, but it strikes me as a pretty moat-less industry.  

 

 

SJ

Yes, I think it’s true, but it is nevertheless an industry where good operators can do very well. Despite being somewhat commoditized, the margins in the industry are generally stable and even demand it stable, leading to stable cash flows. This combination allows skilled operators to deploy significantly leverage for a rollup strategy. Just look at what good operators like BERY or BLL have done.

 

It is an ideal industry for Berkshire to get involved, I think. Stable but slowly growing markets with very little chance of disruption, but with a chance deploy significant amount of capital for solid returns. Low cost of capital and serving as an backstop opportunistically for deals cpuld be BRK‘s advantage.

Edited by Spekulatius
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