From Warren Buffett's annual shareholder letter, here's a gem:
“Buy commodities, sell brands” has long been a formula for business success. It has produced enormous and sustained profits for Coca-Cola since 1886 and Wrigley since 1891. On a smaller scale, we have enjoyed good fortune with this approach at See’s Candy since we purchased it 40 years ago.
It's that simple. Buy a cheap good, create a brand around it, sell it for more. Voila!
