How a family-run candy shop became Warren Buffett's prototype for a dream business
In short: Founded in 1921 by Mary See and her family, this California confectioner evolved from a local kitchen into a retail powerhouse. Beyond its famous chocolates, the company transformed Berkshire Hathaway's investment strategy, shifting the firm's focus from buying cheap, undervalued assets to acquiring businesses with exceptional brand recognition and quality.
The origins of See's Candies trace back to Mary See, who developed her foundational recipes while managing a hotel on Tremont Island, Ontario. In 1921, she moved to Los Angeles with her son, Charles, and his wife, Florence, to open the first shop on North Western Avenue. By the mid-1920s, the brand had expanded to 12 locations, and it maintained thirty shops even during the Great Depression. The company eventually moved its primary production to South San Francisco to leverage the region's cooler climate, which was better suited for crafting their signature creams and truffles.
The business reached a turning point in 1972 when the See family sold the company to Berkshire Hathaway for $25 million. At the time, the firm generated $4 million in pre-tax profit annually. Charlie Munger later noted that See's was the first high-quality business Berkshire ever purchased. This acquisition proved transformative for Warren Buffett, who in 2007 famously labeled the company a 'prototype of a dream business.' It marked a departure from Berkshire's previous strategy of seeking out distressed, undervalued assets, establishing a new commitment to companies with strong reputations.
Today, See's operates over 200 stores, with more than 70% located in California. While the company maintains a traditional retail footprint in shopping centers and airports, it also manages international locations in places like Hong Kong and South Korea. The brand has become a cultural fixture, appearing in iconic television moments like the 'Job Switching' episode of I Love Lucy and influencing the investment philosophies of some of the world's most successful financiers. Despite its massive scale, the company remains deeply rooted in its original mission, sourcing ingredients from local partners like the Guittard Chocolate Company and the Mariani Nut Company.
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Sources
- Summary by Intellect · source: See's Candies
- Also: Wikidata — See's Candies with John Hodgman · CC0
- Also: Wikidata — See's Candies · CC0
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