Very interesting analysis from Benjamin Graham in response to questions regarding how the car industry is behaving. Is there real competition in the automobile business? If General Motors can afford to lower its prices and wipe out the competition, why does it not? Isn’t this anti-competitive and means that the consumer faces artificially high prices and the car makers high profit margins? One quote from Ben Graham in this interview: “General Motors does not care to reduce its prices substantially because of the effect on the competitive situation would be disastrous.”
And on his famous quote on the next video
“In the short run, the market is a voting machine but in the long run, it is a weighing machine.”
Defence Industry. Defence contracts. Defence contractors. Planes. Aircraft. Ben Graham was Chairman of the Research Committee of War Contracts Price Adjustment Board, also known as the Renegotiation Board
