From the 2005 Letter to shareholders: If we take a simple example of a single store, then a comparison of SSS from year to year is fairly straightforward. If a store does $1 million in sales at a 10% operating margin this year, generating $100,000 in operating profit, and does $1.1 million in sales next … Continue reading Nugget: Eddy Lampert on Same store sales (SSS)
Tag: Retail
Buffett on Nebraska Furniture Mart
In his letters to shareholders, Warren Buffett has frequently talked about Nebraska Furniture Mart and its business model. Here are the essential quotes: 1983 About 67 years ago Mrs. Blumkin, then 23, talked her way past a border guard to leave Russia for America. She had no formal education, not even at the grammar school … Continue reading Buffett on Nebraska Furniture Mart
Munger on Walton and his strategy
I’ve read this speech a number of times now. I find it particularly useful when I’ve read too much nonsense and feel the need to reboot my thinking. Here’s Munger on Sam Walton and his early strategy with Walmart: On the subject of advantages of economies of scale, I find chain stores quite interesting. Just … Continue reading Munger on Walton and his strategy
Martin Whitman on GAAP accounting
One investor that I closely follow is Martin Whitman of Third Avenue Funds. He is a classic Graham-ist with some very interesting opinions on investing. Here is a short quote on accounting: ER: You’ve been quoted as saying that it is still possible to find Ben Graham’s “net-nets”, is this still true? MW: Yes. However … Continue reading Martin Whitman on GAAP accounting