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.
There has been much talk in recent years about disruption and trying to pick companies that will disrupt their industries. The debate continued at the Morningstar Investment Conference as Bill Nygren of Oakmark Funds faced off with Morgan Stanley's Dennis Lynch. Q2 2021 hedge fund letters, conferences and more Persistence Morningstar's Katie Reichart moderated the Read More