“Looking back, when we’ve bought wonderful businesses that turned out to continue to be wonderful, we could’ve paid significantly more money, and they still would have been great business decisions. But you never know 100 percent for sure. It isn’t as precise as you might think. Generally speaking, if you get a chance to buy a wonderful business — and by that, I would mean one that has economic characteristics that lead you to believe, with a high degree of certainty, that they will be earning unusually high returns on capital over time and, better yet, if they get the chance to employ more capital — again, at high rates of return — that’s the best of all businesses. And you probably should stretch a little. Charlie and I have had several conversations where we were looking at a business which we liked, and were sort of gagging at the price, and Charlie or I will say, ‘Let’s do it,’ even though it kind of kills us to pay that last 5 percent.” —Warren Buffett
Links - 2/7/2021
Links - 2/7/2021
Links - 2/7/2021
“Looking back, when we’ve bought wonderful businesses that turned out to continue to be wonderful, we could’ve paid significantly more money, and they still would have been great business decisions. But you never know 100 percent for sure. It isn’t as precise as you might think. Generally speaking, if you get a chance to buy a wonderful business — and by that, I would mean one that has economic characteristics that lead you to believe, with a high degree of certainty, that they will be earning unusually high returns on capital over time and, better yet, if they get the chance to employ more capital — again, at high rates of return — that’s the best of all businesses. And you probably should stretch a little. Charlie and I have had several conversations where we were looking at a business which we liked, and were sort of gagging at the price, and Charlie or I will say, ‘Let’s do it,’ even though it kind of kills us to pay that last 5 percent.” —Warren Buffett