1/ "There are two kinds of businesses: The first earns twelve percent, and you can take the profits out at the end of the year. The second earns twelve percent, but all the excess cash must be reinvested-there’s never any cash."
2/ "It reminds me of the guy who sells construction equipment -- he looks at his used machines, taken in as customers bought new ones, and says, “There’s all of my profit, rusting in my yard.” We hate that kind of business." Charlie Munger (2003 Berkshire Hathaway Annual Meeting)
3/ "We love businesses that can earn high rates on even more capital than it earns. Most of our businesses generate lots of money, but can't generate high returns on incremental capital like See's. We look for [ways for See's to wisely reinvest capital], but they don't exist." WB
4/ "We’ve tried 50 different ways to put money into See’s. If we knew a way to put additional money into See’s and produce returns a quarter of what we’re getting out of the existing business, we would do it in a second. We play around with ideas, but we don’t know how to do it.”
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