Blue Chip Stamps

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". [cite court
litigants=Blue Chip Stamps v. Manor Drug Stores
vol=421
reporter=U.S.
opinion=723
pinpoint=
court=
date=1975
url=http://supreme.justia.com/us/421/723/
] 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, and finally merged in a stock swap in 1983. [citation
last = Buffett
first = Warren
author-link = Warren Buffett
title = 1983 Annual Chairman's Letter to Berkshire Hathaway Shareholders
year = March 14, 1984
url = http://www.berkshirehathaway.com/letters/1983.html
]

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." He also said, "When I was told that even certain brothels and mortuaries gave stamps to their patrons, I felt I had finally found a sure thing." Sales dropped to $19.4 million in 1980 and $1.5 million in 1990. In 2006, revenues came in at $25,920. [citation
last = Buffett
first = Warren
author-link = Warren Buffett
title = 2006 Annual Chairman's Letter to Berkshire Hathaway Shareholders
year = February 28, 2007
url = http://www.berkshirehathaway.com/letters/2006ltr.pdf
]

Acquisitions

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.

Wesco Financial Corporation is an 80.1% owned subsidiary of Blue Chip Stamps.

References

External links

* [http://www.kozersky.com/ William J Kozersky Stamp Company] commercial site with pictures of Blue Chip Stamps, and much information


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