Quote: "Rupert would even acknowledge that some part of his interest in the WSJ goes beyond economics,"... The value of companies should in theory be equal to the total worth of their future cash flows, Buffett explained. But some businesses, such as sports clubs, movie studios and important national newspapers, have an extra value Buffett called the "B factor." .. The B factor at Dow Jones is huge, probably second only to the New York Times in the whole world," Buffett said.
Ughh .. The New York Times? Come on Mr. B. .. maybe in 1978 when the BeeGee's sang about it in Saturday Night Fever. We can all understand the tenor of what Mr. Buffet is speaking to of course. There is a power, influence, branding and cachet value that transcends the cash-flows the business can bring.
Domain names are the clasic "B Factor" investment of course. Why else pay 140X for a name like snoringcure.com ($8,000+ at Snapnames.com today). It will be a frosty day in Hell when PPC revenues pay for that one, but I now own a great snoring name! I can sell products relating to the malady .. some of them may cure my snoring (much to my wife's relief). It is generic, descriptive, easy to buy traffic for, easy to arbitrage - I could probably live off that one name! Man you gotta love domains. NYT example notwithstanding.. Buffet is right.