← Back to Explore
concept
🕰1 min read
🎵Wisdom Density:
Light
🧭1 concepts
👁 -- readers
Gruesome
A business that requires ever-increasing capital just to stay in the same place.
📚 Historical Mentions & Citations (1)
Click a reference document below to expand and read the exact paragraph(s) containing this concept in the archive.
📜2007 LetterExcerpt Available▼
2007 LetterExcerpt Available
Businesses — The Great, the Good and the Gruesome
Now let’s move to the gruesome. The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money. Think airlines. Here a durable competitive advantage has proven elusive ever since the days of the Wright Brothers. Indeed, if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down.