Warren Buffett has a preference for brands that are capable of expanding their sales, whether it be regionally, nationally or internationally. He refers to these as brands that “travel well”. Nevertheless, he acknowledges that not all brands have the ability to do so. This is an important reminder when considering the enticing prospect of national distribution or international expansion.
“We love the idea of products that will travel. Some travel well, some don’t,” Buffett said at the 2000 Berkshire Hathaway annual meeting. “I mean, it’s an incredible world that way. Candy bars don’t seem to travel so well, you know. Soft drinks travel terrifically. And razor blades travel terrifically. But the Cadbury bars sell in England. And, you know, and the Hershey bars sell here.”
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© 2023 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.