In Buffett’s invest strategy, the main pillar is the fundamental knowledge of pricing strategies companies. This knowledge is the key to successful investment.
Thus, the approach to pricing in the company should play a key role in the selection of the investment. It is important to understand what is meant is not an assessment of the company, namely the formation of prices for the products. According to Buffett, if the company has the ability to raise prices without losing business to a competitor, it is a good and reliable business.
If we analyze the retail, many businesses do not pay attention to the pricing and therefore do not know whether it is possible to raise prices without losing market share. For successful operation it is necessary to strive to achieve the maximum value of the average retail price for their goods.
A striking example is the company Apple, which is well-versed in the issue of customer loyalty to your product. If you are going to invest, you must first learn how the company of your portfolio form price.Follow us in social media: