What P E ratio does Warren Buffett buy at?

He would focus on a business with a P/E of 15 or lower. He was looking for a return of something better than 6.6\% and later, he’d try to find a company that had a price to book that was lower than 1.5 because that’s where all the safety was.

How much did Warren Buffett pay for Sees Candy?

Yet its durable competitive advantage has produced extraordinary results for Berkshire. We bought See’s for $25 million when its sales were $30 million and pre-tax earnings were less than $5 million.

When did Buffett buy sees?

1972
Berkshire Hathaway purchased See’s Candies in 1972. Born in Omaha, Nebraska in 1930, Warren Buffett has been dubbed the most successful investor of the 20th century. From a young age, Buffett showed a keen interest in business and investing. His first ventures included selling gum, Coca-Cola and magazines door-to-door.

What Stocks Did Warren Buffett buy first?

At 11 years old he made his first investment, buying three shares of Cities Service Preferred at $38 per share. The stock quickly dropped to only $27, but Buffett held on tenaciously until it reached $40. He sold his shares at a small profit but regretted the decision when Cities Service shot up to nearly $200 a share.

Why is See’s candy so expensive?

Visit Business Insider’s homepage for more stories. The billionaire investor and Berkshire Hathaway CEO says people associate the boxes of chocolates with romance. Therefore, See’s can price them based on their emotional value instead of their production cost.

Did See’s candy go out of business?

See’s Candies, the Bay Area-based candy chain known for its black-and-white color scheme and generous free sample policy, has temporarily ceased operations, its CEO says, for only the second time in its 98-year history.

Is See candies only in California?

See’s Candies operates over 200 stores in the following U.S. states: Arizona, Arkansas, California, Colorado, Hawaii, Idaho, Illinois, Indiana, Massachusetts, Minnesota, New Mexico, Nevada, Ohio, Oklahoma, Oregon, Tennessee, Texas, Utah, Washington, and Wisconsin.

What is the Shiller PE ratio?

3 days ago
The formula for the Shiller P/E ratio is simple: current price divided by average inflation-adjusted 10-year EPS. To do that, you’ll need to find an index’s EPS for each of 10 years, adjust each for inflation to bring it into current dollars and find their average.

How much candy did see’s sell in 1972?

At See’s, annual sales were 16 million pounds of candy when Blue Chip Stamps purchased the company in 1972. (Charlie and I controlled Blue Chip at the time and later merged it into Berkshire.) Last year See’s sold 31 million pounds, a growth rate of only 2\% annually.

How much did Berkshire Hathaway pay to buy See’s Candy?

Berkshire Hathaway was able to acquire See’s Candy for $25 million. The business had $31 million in sales in 1972 and made $2.083 million in profits after taxes. The business needed a working capital of $8 million to operate.

How did Buffett make his money from see’s?

As Buffett told Fortune in 2012, “We have made a lot more money out of See’s than shows from the earnings of See’s, just by the fact that it’s educated me, and I’m sure it’s educated Charlie, too.” When Buffett and Charlie Munger decided to buy the company in 1972, See’s had $30 million in annual sales and profit of $4.2 million.

Who owns see’s candies?

For anyone not familiar with the company, Bloomberg provides a helpful summary: “See’s Candies produces and retails boxed chocolates. The company was founded in 1921 and has store locations in the United States and internationally. See’s Candies operates as a subsidiary of Berkshire Hathaway.”