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Blue Chip Stamps
From Wikipedia, the free encyclopedia
Blue Chip Stamps started as a trading stamps company called "Blue Chip Stamp Co."
In 1963, the United States government began an antitrust action against Blue Chip Stamp. In 1967, the parties agreed to a consent decree which led to the creation of a new company "Blue Chip Stamps".
In 1975, a lawsuit filed by Blue Chip Stamps was decided by the Supreme Court in the opinion Blue Chip Stamps v. Manor Drug Stores. This ruling helped establish the precedent that only buyers or sellers of securities can file suit for damages due to deceptive practices.
Berkshire Hathaway, the investment vehicle of Warren Buffett, began investing in Blue Chip Stamps in 1970. Berkshire's investment in Blue Chip went from 36.5% in 1977, to 60% in 1979, to the 80.1% it is today.
According to Buffett's 2006 letter to Berkshire shareholders, Blue Chip had 1970 sales of $126 million as about 60 billion of "stamps were licked by savers, pasted into books, and taken to Blue Chip redemption stores." Sales dropped to $19.4 million in 1980 and $1.5 million in 1990. In 2006, sales came in at $25,920.
On January 3, 1972, Blue Chip obtained a controlling interest in See's Candy Shops. Blue Chip later acquired 100% of See's for an overall price of $25 million.
Blue Chip Stamps is a wholly owned subsidiary of Wesco Financial Corporation.
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