Monday, December 12, 2005

The Best Business

The best businesses can maintain their earnings without continued reinvestment, whereas in the worst you have to keep pouring money into a money-losing business.

The best business is being the best surgeon in town. You don't have to do any reinvestment - the investment was the education. The surgeon will retain his earnings power, regardless of inflation.

Excerpt from "2005 Berkshire Hathaway Annual Meeting"


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