No. of Recommendations: 1
I beg to differ. This is not that different from cigar butt investing, except rather than taking a puff and throwing away, you can keep puffing.
Let's use AOL.com as an example.
The last say 1 million members are very sticky. I mean they've stuck with AOL.com for over 20 years and they still visit daily to check emails and keep in touch with friends and family.
BSP buys AOL.com and lays off all the back office staff. Why? Obviously, they can scale their existing back office operation to run all the various marketing, cybersecurity, IT ops, advertising, etc. for AOL.com
And they continue to puff on the cigar.
It's a great sticky business, the question is how much to pay for it.
Thanks for that perspective.
Do you think Berkshire could provide debt for additional acquisitions so BSP won’t have to use higher priced debt financing? I see their cost of capital is over 9% or so, according to Gemini.
