TIME OUT: Franchise Investing (Pat Dorsey)
Thanks to www.santangelsreview.com
A franchise-type company typically (but not ALWAYS) becomes a distressed, deep value investment. But since we will next be discussing Buffett and his development from cigar-butt investing to buying See’s Candies, I thought a review of franchises by this money manager would interest you.
One mistake investors make is confusing an average company with a franchise. Not to pick on anyone but when Mohnish Pabrai said Pinnacle Airlines had a moat due to the type of aircraft the airline was flying or Exide Batteries had a brand, he thought he was investing in a franchise. Yes, Excide batteries may be well-known but it doesn’t change a consumer’s behavior.