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Amazon threat to Duracell and other Berkshire brands


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Page 75 of Mary Meeker's KP Internet Trends 2017 report shows that Amazon is a little over 30% of the USA online battery market and Duracell is a little over 20% as of 8/16.

 

What are some of the other large Berkshire brands that will feel pressure from Amazon in the coming years? Looking at the big picture, how much will this matter for Berkshire?

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I think it depends on how far out we want to go. I've said it before but BRK is essentially a collection of great "old economy" brands and companies.

 

If Elon Musk's Boring Company or Hyperloop can successfully send something from CA to NYC in 60 minutes or whatever, couldn't that effect BNSF and all the rails?

 

La Croix and many of the sparkling waters are killing it thanks to newer perceptions of soda that will likely only grow.

 

What will happen to GEICO and insurance companies if people stop buying cars and/or we have predominantly autonomous vehicles?

 

I don't know if these are specifically Amazon threats to Berkshire, but technology is certainly a major threat to the Buffett kingdom if you are looking out several decades.

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Guest longinvestor

1999 all over again?

;D

 

Otoh, TTID. Really, really different. Maybe those who follow, think like Berkshire are just like dinosaurs, just as they were getting wiped off the face of the earth by the storm called FANG.

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Things do really change sometimes though. It isn't always tulips and bubbles.  When was the last time you ordered from the Sears & Roebucks Catalog?  When was the last time you brought out your typewriter to write a letter, hell when was the last time you wrote a letter? There are bubbles and hype all the time, but there is also real technological change that replaces the old way of doing things and puts the companies who do things the old way out of business.  There is a real threat here, how big or little the threat is is of course debatable, but it shouldn't be dismissed out of hand.

 

 

 

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Ben Bridge Jeweler, Borsheims, Kraft-Heinz, Fruit of the Loom.

 

Yeah, Fruit of the Loom and Russell should face challenges. I thought The Everything Store said that Amazon has some difficulties with jewelry? Right now I think WFM has different brands than Kraft-Heinz but that space might change quite a bit in coming years.

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