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concept
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🎵Wisdom Density:
Light
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Great
A business that delivers very high returns on capital and requires little incremental investment to grow.
📚 Historical Mentions & Citations (1)
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📜2007 LetterExcerpt Available▼
2007 LetterExcerpt Available
Businesses — The Great, the Good and the Gruesome
Charlie and I look for companies that have a) a business we understand; b) favorable long-term economics; c) able and trustworthy management; and d) a sensible price tag. We like to buy the whole business or, if management is our partner, at least 80%. When control-type purchases of quality aren’t available, though, we are also happy to simply buy small portions of great businesses by way of stockmarket purchases. It’s better to have a part interest in the Hope Diamond than to own all of a rhinestone.