Business Quote by Warren Buffett
“Basically, the single-most important decision in evaluating a business is pricing power.”
About This Quote
Source Speech: Annual Shareholder Meeting, Warren Buffett, 2015
Pricing power determines a company's ability to set prices above costs, shaping profitability and competitive advantage.
In simple terms: Pricing power drives profits.
Key Takeaway
Focus on assessing pricing strength.
Themes
business strategy
finance
competition
Mood
analytical
strategic
Type
business
financial
When to use this quote
- product launch
- pricing review
- market entry
- merger evaluation
Key Concepts
market power
price elasticity
value creation
Questions to Reflect On
- How does pricing power affect long‑term growth?
- What indicators reveal strong pricing power?
A Different Perspective
Pricing power can be limited by regulation or consumer price sensitivity.
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