University of Berkshire Hathaway: 30 Years of Lessons Learned from Warren Buffett & Charlie Munger at the Annual Shareholders Meeting

by Daniel Pecaut

In the case of Philip Morris, the price of Marlboro was steadily raised to $2.00 per pack, enabling $1.00 per-pack generics (a $500 per-year differential for a 10-pack-per-week smoker) to grab significant market share. Philip Morris recently responded by dramatically cutting the price of Marlboro.