Pricing power

If we have a strength, it is in recognizing when we are operating well within our circle of competence and when we are approaching the perimeter. The single most important decision in evaluating a business is pricing power. You’ve got the power to raise prices without losing the business to a competitor, and you’ve got a very good business. And if you have to have a prayer session before raising the price by a tenth of a cent, then you’ve got a terrible business.