フランチャイズ・バリュー : ビジネスの収益力を考える

概要

論文の詳細を見る
Search for good business with strong franchise is the essential idea of value investing. Warren Buffett has learned from his investment practice that the stability of earning power is more important than the lower investment price. We review the DDM and FFM model and discuss the relation between margin and return. We compare the Commodity-type and Franchise-type business; discuss the situation of competition, homogeneity, market access, free entry, substitution, difference in product and service, special relationship with customer, and price war. Our research suggests that the significant profit margin is an important sign of sustainable above average earning power. Some companies with big name but never create value in long run and some business with pricing power bring big return to their shareholder.