Warren Buffett, Rose Blumkin and Vending Machines

In todays Hobby Letter, the Rose Blumkin story and the step by step in how to build a vending machine empire. I hope you enjoy! -Buster

If you don't know who Rose Blumkin is, then you're in for a treat.

She moved to America speaking no english yet started a furniture store with $500 in the 1930's.

She built that business into Nebraska Furniture Mart which Warren Buffet Later Bought for 60 Million Dollars in 1983.

Mrs. B was 88 at the time of the transaction, so Warren didn't think it necessary to secure a non-compete agreement from her. This turned out to be a significant oversight.

After taking a short break, Mrs. B launched a competing enterprise right across the street named "Mrs. B.’s Clearance and Factory Outlet" when she was 95 years old!

Subsequently, Buffett acquired this new venture for an undisclosed sum and ensured Mrs. B signed a non-compete clause at 97 years old, learning from his previous mistake!

Buffett integrated this acquisition into Berkshire Hathaway, and Mrs. B continued her involvement there until she reached 103 years. Remarkably, she nearly spanned three diferrent centuries in her lifetime (December 3, 1893 – August 9, 1998).

Buffett regards her as a benchmark for business leaders, suggesting that "Aspiring business managers should closely examine the simple, yet uncommon, qualities that led to Mrs. B.'s extraordinary success. I meet with students from 40 universities annually, and I always start their visit with a trip to NFM. If they grasp the principles behind Mrs. B.'s achievements, they won't need any further guidance from me."

Mrs. B's remarkable success can be attributed to her unwavering dedication to delivering value to her customers. Her commitment to this principle was so strong that it once led to a legal challenge from a competitor. She offered carpets at half the price her competitors did, who were content with 50% profit margins, while she aimed for just 10%!

Selling 3 yards of carpet she bought for $9 to the customer for under $10 while her competitors would be pushing $15+! It obviously resulted in her getting all of the business and building a huge company, similar to costco in that way.

Stories like these are what I love to highlight in The Hobby Letter as it shows how a little old lady who understands the game can run laps around high paid executives any day of the week.

We all should strive to be that little old lady and strive to be half as sharp as MRS B at 100 years of age. 

Now; Onto vending machines and all those who love snacks and drinks (and making money from them)

A story broke earlier this week about an NCAA March Madness basketball star having multiple Vending Machines as a side hustle and loving it.

And so I figured it would be a good time to break down the basics of owning and operating vending machines as its also such a popular category:

Log in or subscribe to read the step by step on how to build your vending machine empire or just learn about the business because IT IS FASCINATING. Every $ that is paid as a premium member goes right back into making a more valuable product here for you! Thank you!

I interviewed a successful vending machine business owner and this is a summary of what he said and my step by step off of that in how to start your vending machine business today: 

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