‘Does anybody know how much it costs to manufacture a tube of toothpaste?’ Platinum’s Kerr Neilson asked a room of hundreds of attendees at our 2012 Sydney Value Investing Conference. Nobody did. This is the best type of business, he explained – one in which revenue is totally disconnected from input prices.
That’s certainly the case for a bottle of Penfolds wine, which is among a clutch of prestige wine brands that have become global status symbols and collectibles. But Penfolds has an advantage over other wine producers, one peculiar to it.