Weekly Roundup, 16th August 2016

Weekly Roundup, 16th August 2016

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2 Responses

  1. Thanks for the roundup Mike. Not sure how the Economist thinks Coca-Cola is a monopoly though… last time I checked there were a million cola drinks, mostly cheaper and virtually identical to Coke. Ditto for Gillette.

    I recently bought some Tesco Value toothpaste for 25p. Looking at the fluoride content it should do virtually the same job as Colgate toothpaste for considerably less cost!

    If people want to pay top dollar for branded goods then that’s up to them, but it’s slightly embarrassing to see them labelled as “monopolies”.

    • Mike Rawson Mike Rawson says:

      You’re very wise to buy value toothpaste. I haven’t bought a real Coke for 20 years, and I shave with Tesco blades. But we’re a minority I think.

      Monopoly power was definitely stronger in Western society 20 to 30 years ago (when Buffett was buying into these firms), but brands still count for a lot, especially in the developing world. People do want to pay top dollar for a brand because they think it says something about them.

      Coke and Gillette would be impossible to displace from their number one positions in their markets, so I’d argue than they are at least oligopolies. It’s not like the car market for example.

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Weekly Roundup, 16th August 2016

by Mike Rawson time to read: 8 min
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