Big Money Thinks Small
“Investors have fared best in industries that cater to daily needs where customers can’t or won’t switch.”
― Big Money Thinks Small: Biases, Blind Spots, and Smarter InvestingIn 2009, during the peak of The Great Recession, Warren Buffett was driving through downtown Omaha, Neb., with a CEO friend, who took note of their bleak surroundings: Empty streets, shuttered shops, a future with seemingly little hope.
“Warren, how are we ever going to pull out of this?”, the friend asked. “This country is never going to be the same.”
Buffett paused, then posed a question.
“Do you know what the best-selling candy bar was in 1962?”
When the friend said he wasn’t sure, Buffett told him it was Snickers. Then, he told him what the best-selling candy bar was now: Snickers.
Why do I say Big Money thinks small because you usually don't make money with big stories with big trends with big news. you make money in small things that are boring. Snickers is boring. Of course Mars company is private but Hershey's is public and a big success. These consumer brands where your candy bar costs centimes and you sell it for 10X the cost is where the big money is made.
Mars is known for his secrecy and obsessions with a clean factory. They don't think big they think small and they are big.
The company is famous for its secrecy. A 1993 Washington Post Magazine article was a rare raising of the veil, as the reporter was able to see the "M"s being applied to the M&M's, something that "no outsider had ever before been invited to observe".
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