what would buffet do?, page-8

very simple buffett wouldnt have bought at the IPO price.
buffett would have recognised that
(a) preference should be given to the franshisor, not the franchisee (this is where the real money over the long term is made)
(b) given that collins foods is the franshisor (with a stable underlying business), a look through the cycle approach would be required as well as a greater discount to compensate for margin of safety, and the recognition of the fact that this is a mature industry in australia.

At the current price, buffet in his earlier days might start to become interested given that one can predict a long term 'bond like return' over the whole of the cycle.