Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of BRK.ABest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd


The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
Unthreaded | Threaded | Whole Thread (15) |
Author: Goofyhoofy 🐝 HONORARY
SHREWD
  😊 😞

Number: of 21944 
Subject: Re: OT: Apple
Date: 09/09/26 12:15 PM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 4
Google isn't like BNSF. If you need to move coal in Montana you're stuck with BNSF.
Google isn't like MidAmerican either. If you need electric service in Des Moines, Iowa you're stuck with MidAmerican.

The people choosing Google choose it because it does what they want.


People like to think they are rational and make decisions on such criteria. The truth is that there is, in the marketing world, something called “image momentum.” It means that once you have achieved a place in the consumers mind it is more difficult to dislodge it than if there was no image there at all. That also makes it harder for competitors to penetrate that mental “rack space.”

At the moment Google has the crown and probably will for a long time. Unless the company makes horrendous mistakes (“New Coke”) or is wrapped upside the head by some unforeseen circumstance (“Bud Light”), they will continue to coast on that momentum for quite some time.

People today forget that Schlitz was the #1 beer in the US in the 1950’s. Then a bright CEO in the 70’s found a way to make it cheaper and goose profits, except oops, it went flat sooner, so bars were selling stale beer. Profits increased! (For a while.) Still, Schlitz didn’t collapse overnight, it ran along for years more, outpacing corporate bribery scandals, stale beer, and “floating flakes” in the foam (a chemical attempt to prolong the life) and it has fallen to its current irrelevance. (Pabst, the most recent owner, finally discontinued sales of the brand just 3 months ago.)

Google could make quite a few mistakes and be OK, but not if it kept making them or made them worse. But any new contender would have to be better by a lot to dethrone them. (There are other business considerations which could hurt them; a dismantling of their ad monopoly [just validated but excused by the courts] or other unforeseen technical developments, but as it goes, Google will be around a while.)
Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to Goofyhoofy here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 21,448 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 57 recs · 2023
Summary of 2Q 2026 · 54 recs · 2026
3Q Summary · 53 recs · 2024
Unthreaded | Threaded | Whole Thread (15) |


Announcements
Berkshire Hathaway FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Best Of BRK.A | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community