This chapter explores the concept of pricing power and its significance in relation to inflation and rising input costs. The speakers discuss the benefits of having pricing power and being competitively differentiated, as well as the strategies to determine whether a business possesses adequate pricing power. They also analyze how different types of companies, such as technology companies, may experience varying degrees of pricing power.
Clay Finck chats with Arif Karim about the importance of pricing power, the investment case for Ferrari stock, and much more!
Arif is a senior investment analyst at Ensemble Capital. Before joining Ensemble Capital, he was a senior investment analyst and co-portfolio manager at Kilimanjaro Capital.
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro
02:03 - The importance of pricing power for a company operating in an inflationary environment.
04:06 - How an investor can determine whether a company has adequate pricing power or not.
09:39 - Why Costco has spectacular pricing power, despite their very low margins.
15:52 - The investment case for Ferrari.
38:58 - What an idiosyncratic business is.
And much, much more!
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
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