If you can find a company that can get away with raising…
“If you can find a company that can get away with raising prices year after year without losing customers (an addictive product such as cigarettes fills the bill), you've got a terrific investment.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Consistently raising prices without losing customers indicates a product with strong demand and low price elasticity, making it a valuable investment.
In simple terms: Price‑elasticity shows a product’s market power.
Key Takeaway
Invest in firms with in‑elastic demand.
Themes
investment
pricing
consumer behavior
market power
Mood
cautious
analytical
Type
financial
strategic
When to use this quote
- stock selection
- portfolio management
- industry analysis
- risk assessment
- product development
Key Concepts
economics
strategic analysis
Questions to Reflect On
- Is high pricing always ethical?
- How can you mitigate risks of price‑sensitive markets?
A Different Perspective
Such products may face regulatory or ethical scrutiny.