Charlie Munger

Kirkland is a brand the way Tide is a brand. And Hermes is a different kind of a brand.

Kirkland is a brand the way Tide is a brand. And Hermes is a different kind of a brand.

Well, it's hard for us not to love brands since we were lucky enough to buy the See's candy for $20 million as our first acquisition. And we found out fairly quickly that we could raise the price every year by 10% and nobody cared. We didn't make the volumes go up or anything like that. Just made the profits go up. So we've been raising the price by 10% a year for all these 40 years or so.

Well, it's hard for us not to love brands since we were lucky enough to buy the See's candy for $20 million as our first acquisition. And we found out fairly quickly that we could raise the price every year by 10% and nobody cared. We didn't make the volumes go up or anything like that. Just made the profits go up. So we've been raising the price by 10% a year for all these 40 years or so.

And it's been a very satisfactory company. We didn't require any new capital. That's what was so good about it. Very little new capital. We had two big kitchens and a bunch of rental stores when we bought it. Now it's got two big kitchens and a bunch of rental stores. Well... Charlie was a playboy. And his brother ran the company, his older brother, and dominated it completely.

And it's been a very satisfactory company. We didn't require any new capital. That's what was so good about it. Very little new capital. We had two big kitchens and a bunch of rental stores when we bought it. Now it's got two big kitchens and a bunch of rental stores. Well... Charlie was a playboy. And his brother ran the company, his older brother, and dominated it completely.

But when he died, Charlie made his brother his executor. And now he needs a lot of money to pay death taxes. He doesn't have it. And it's due, you know, eight months or something later. And so they really wanted to sell so they could pay the death taxes. And Steve was only making $4 million pre-tax when we bought it.

But when he died, Charlie made his brother his executor. And now he needs a lot of money to pay death taxes. He doesn't have it. And it's due, you know, eight months or something later. And so they really wanted to sell so they could pay the death taxes. And Steve was only making $4 million pre-tax when we bought it.

We only found out about it because Charlie C. was on his cruise to Hawaii or something with this guy who was a client of an investment counselor who also worked for Blue Chip Stamps, which is the company that bought it. And at any rate, that's how we found out about it. We paid that guy a finer fee. We've never paid one cent. He always says that it was worth it.

We only found out about it because Charlie C. was on his cruise to Hawaii or something with this guy who was a client of an investment counselor who also worked for Blue Chip Stamps, which is the company that bought it. And at any rate, that's how we found out about it. We paid that guy a finer fee. We've never paid one cent. He always says that it was worth it.

Of course, but you don't want to have a reputation for paying finer fees. Everybody in the world will be bothering you all day long.

Of course, but you don't want to have a reputation for paying finer fees. Everybody in the world will be bothering you all day long.

I think your chances of buying one of them is so low I wouldn't even look. I don't even believe in looking at things that I might find. You're not going to get a chance to buy Hermes. No curiosity without a return. Yeah, yeah, yeah.

I think your chances of buying one of them is so low I wouldn't even look. I don't even believe in looking at things that I might find. You're not going to get a chance to buy Hermes. No curiosity without a return. Yeah, yeah, yeah.

There are a lot of professional investors that buy nothing but branded goods. The one they usually start with is Nestle. They've done two or three points better than average, but it's not a bonanza.

There are a lot of professional investors that buy nothing but branded goods. The one they usually start with is Nestle. They've done two or three points better than average, but it's not a bonanza.

It was very interesting. It's something about the flavor of ketchup on a goddamn fried potato. People are really willing to change brands over. They want Heinz. And so we could raise the price of Heinz pretty much anywhere. But you try to raise the Kraft cheese, and everybody goes into rebellion, including the final customer, the housewife.

It was very interesting. It's something about the flavor of ketchup on a goddamn fried potato. People are really willing to change brands over. They want Heinz. And so we could raise the price of Heinz pretty much anywhere. But you try to raise the Kraft cheese, and everybody goes into rebellion, including the final customer, the housewife.

They don't care that much about whether the cheese is Kraft or not.

They don't care that much about whether the cheese is Kraft or not.