A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Thursday, July 21, 2005

The Kinds of Businesses Warren Buffett Avoids

Warren Buffett doesn't like businesses that are price-competitive. These businesses are easy to spot because they usually sell a product of service whose price is the single most important motivating factor int he consumer's decision to buy. Here's a list of some of those businesses:

  • Internet portal companies

  • Internet service providers

  • Memory-chip manufacturers

  • Airlines

  • Producers of raw foodstuffs such as corn and rice

  • Steel producers

  • Gas and oil companies

  • The lumber industry

  • Paper manufacturers

  • Automobile manufacturers