“If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business. And if you have to have a prayer session before raising prices by a tenth of a cent, then you’ve got a terrible business." - Warren Buffett
Construction companies will need to pray very hard before raising their prices a.k.a they have no moat.
When they raise prices, their clients just select the next construction firm on the list.
- No switching cost.
- No IP and branding.
- No network effects.
- No cost advantage.
I'm invested in one construction company and I'm investing from a macro point of view (more infrastructure spend and the commodity boom cycle). I'm not investing because construction companies are some of the best businesses to be in. They are many industries out there with better economics and moats.
“If you’ve got the power to raise prices without losing business...
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Last
$1.27 |
Change
0.005(0.40%) |
Mkt cap ! $779.1M | |||
| Open | High | Low | Value | Volume |
| $1.26 | $1.27 | $1.25 | $960.2K | 762.2K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 2782 | $1.26 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.27 | 19982 | 3 |
View Market Depth
| Last trade - 16.10pm 03/05/2024 (20 minute delay) ? |
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Last
$1.26 |
Change
0.005 ( 0.11 %) |
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| Open | High | Low | Volume | ||
| $1.26 | $1.27 | $1.25 | 491428 | ||
| Last updated 15.59pm 03/05/2024 ? | |||||
| SSM (ASX) Chart |