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by hisnameismanuel 2669 days ago
Yes, you're right - one can dominate the cola industry, but if the cola industry itself goes away, one has serious problems.

To your other point, Buffett doesn't always have the time to elaborate on each answer, so perhaps you missed it in this context. In general, a supreme distribution network is something that he values highly. It's known as having a 'moat' and is one of his most cited investing principles.

1 comments

Who would have serious problems if the cola industry goes away, except for the owners of the cola companies? It would be greatly beneficial to society, at least with a substantial decrease in healthcare costs.
Not even the cola companies would care. They would probably just sell more juice and bottled water. And the bottled water has much higher margins.
Sorry - I think there's perhaps a disconnect in how I use English v others.

I was referring to the cola companies having problems.