Warren Buffett invested $25 million to acquire See's Candies in 1972, and the logic behind this investment is worth pondering.

What truly holds value is not the candy itself, but the pricing power.

Every Valentine's Day, See's marketing copy is brilliant—"Guilt, guilt, guilt." Men see the ads and have to take the exit off the highway. That is the power of branding.

Imagine someone telling their loved one, "Darling, I bought the cheapest one this year." Impossible. That’s why See’s can keep raising prices—consumers are not just buying candy; they are purchasing emotions and brand promises.

The results are obvious: after December 26th, consumer demand plummets, but See’s has already generated most of its annual revenue. This cyclical control of pricing power is exactly the embodiment of a moat.

Pricing power = Brand trust + Monopoly over consumption scenarios. This logic applies in any market.