No. of Recommendations: 5
WEB invested in businesses he understood. For a retail shop, visiting is an easy way to better understand the business. I am not a fan of the DG business model (selling unhealthy food to poor people), and so would never consider investing in DG. I have never been inside a DG, but have been to Family Dollar and Kmart stores that probably are similar. The Family Dollar and Kmart stores I visited are now closed, and have been replaced by higher quality stores. This reinforces my reluctance to even consider a DG investment.
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Buffett's 2007 Letter to Shareholders
"Let's take a look at what kind of businesses turn us on. And while we're at it, let's also discuss
what we wish to avoid.
Charlie and I look for companies that have a) a business we understand; b) favorable long-term
economics; c) able and trustworthy management; and d) a sensible price tag...
Our criterion of 'enduring' causes us to rule out companies in industries prone to rapid and
continuous change. "
Berkshire Hathaway: PDF document 