In the Intelligent Investor by Benjamin Graham, he made mention of the intrinsic value of a company and I suspect that Warren Buffett saw where he could enable NFM to create greater value in the future despite any risk posed by the furniture market.
My thoughts are that a simple analysis went into the Buffett buy decision that is:
- the USA population will continue to grow into the future
- people will need household furniture when they move out of their parent's house
- the buyers will buy from the cheapest price place no matter where that value lies.
Nobody sells as well as Rose Blumkin's NFM did.
What I have learnt from value creation investment is that; they are formed around simple steadfast concept executed over long period of time without a wavering strategy.
Most great companies lead off with a strong motto and they stick to it for many years into the future;
- Just Do It
- Coke It Is
- Bigger Better Network
- 15 minutes could save you 15% off or more
- Safe and Cheap
- Buy and Hold.
What is your motto?
What are you creating your value around?
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