Investing in companies that increases Social Efficiency

Colgate, with its oral care business units, improves oral hygiene for a small cost today to improve our standard of living

Costco, supply chain efficiency reduces cost of consumption for customers, making both investors and customers better off at the same time.

3G Capital companies are all beasts of efficiency. In general society is better off because they are able to deliver same or better quality products with a much lower cost structure.

Verisign. It’s a monopoly but it performs an absolutely critical role in the internet driven world by serving as a registry for domain names.

Berkshire Hathaway’s group of companies 

  • Geico, low expense ratio increases payout for consumers while at the same time ensuring greater profitably for investors
  • Regulated Utilities type of companies like BHE and BNSF. Berkshire Hathaway’s iron clad capital sufficiency reduces the cost of borrowing for its capital intensive subsidiaries. This ultimately translates into lower utility cost for end consumers.
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