[bruinbirdman]

"he invested into a manufacturer of inelastic demand goods:"

Oh, I think if someone made the same thing cheaper and could deliver it on time, one might find out that there is some stretch to that inelasticity. Its called competition.

Inelasticity might be if I have food on a desert island and no money and you have a thousand dollars and no food.

Now if I have twice as much food as you on that island and we both have $1000, I might be willing to test elasticity if I know a boat will arrive tomorrow and you don't.

In any event, Buffets wire and water processing equipment are not inelastic.

"Price elasticity, for example, is the sensitivity of quantity demanded or supplied to changes in prices. "

[CutePuppy]

Interesting observation about investment into inelastic demand goods. I made a somewhat similar observation some time ago that he really invests in inflation, i.e. industries (insurance etc.) or products (See's, Coca-Cola etc.) that either benefit from or can withstand inflation much better than non-brand name products.

That also explains his reluctance to invest in high technology, an internally and externally essentially deflationary industry, aside from his explanation that he "doesn't understand it".