Blue Chip Stamps - Investment Thesis
Why Warren Buffett and Berkshire Hathaway invested in Blue Chip Stamps.
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Blue Chip Stamps - Investment Thesis
The Cigar Butt Strategy
Blue Chip exemplified Buffett's early "cigar butt" investing:
- Bought at deep discounts to intrinsic value
- Controlled valuable affiliates
- Earned high returns on invested capital
Key Affiliates
Blue Chip controlled or held major stakes in:
| Company | Ownership | Business |
|---|---|---|
| See's Candy Shops | 99% | Candy/confectionery |
| Wesco Financial | 80% | Savings & Loan |
| Diversified Retailing Company | Various | Retail |
Learn more at Blue Chip Stamps