Global brand WD-40 has a winning formula, but is the price right?
- Slower than expected second quarter sales hit WD-40 shares in April
- Is this company priced to unattainable perfection or does its strong brand value justify the price?
In a recent television interview with CNBC, US billionaire Warren Buffett said that strong consumer brands can still "go toe to toe with Walmart or Costco". But he warned that weaker brands faced tougher competition from cheaper own-branded products partly owing to the fact that "the ability to price has changed, and that’s huge". Mr Buffett's comments related to his troubled stake in consumer goods giant Kraft Heinz (US: KHC), but we also think his comments are relevant for investors in WD-40 Company (US: WDFC). Sales slip on pricing pushThe WD-40 share price slipped this week following news of slower…