Warren Buffett Says Pricing Power Is Key to Finding Quality Businesses. These 3 Stocks Have an Abundance of It
Coca-Cola, Apple, and Netflix are three stellar businesses that have done well even as they've increased their prices.
Overview
Billionaire investor Warren Buffett once said that "the single most important decision in evaluating a business is pricing power," and that "if you've got the power to raise prices without losing business to a competitor, you've got a very good business."
For Buffett, that's a sign of a strong competitive advantage, or moat. If prices don't dissuade customers, that symbolizes strong brand loyalty, perhaps even a necessity that consumers can't do without. Three stocks with plenty of pricing power and that can make for good long-term investments are Coca-Cola (NYSE: KO), Apple (NASDAQ: AAPL), and Netflix (NASDAQ: NFLX).
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Originally published at www.fool.com.