chemicals but i do understand economics, are there moats are their
barriers, i said call charlie he is smarter, charlie said i dont
understand it either, david didn't get a hold of charlie. what dave
said to me, is what ham bridge (CEO of Lubrizol) explained ot me was
a good understanding of industry dynamics and what relation oil
companies had to lubrizol, oil companies have got out of the business,
consolidated over time, i looked over ease of entry, when i bought
sees in 1972, i have 100mm could i take on sees candies and i came up
with the answer now. I ask the same question, if i had $100B could I
take on Coca cola, bran son tried it with virgin cola but thats not
the type of promise you want to make. its not impossible to enter this
business but the lubrizols low cost, 10B market, pretty good size
motor on this thing, lots of patents but more than that they have good
connection with partners when someone makes motor they work with
lubrizol. I believed Iscar had a durable competitive advantage.
Lubrizol is the #1 market share and the business is sustainable and
good business over time, engines run longer run smoother. Lubricants
are always going to be around it will be around for a long time.
CM - Iscar and Lubrizol are sisters under this skin, small market
thats anyone with any sense would not enter, but if you have any more
give Warren a call
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