The ideal business is one that earns very high returns on capital and that keeps on using capital at those very high returns. That becomes a compounding machine. So if you had your choice, if you could put a hundred million dollars into a business that earns twenty per cent on that capital - twenty million - ideally, it would be able to earn twenty per cent on a hundred and twenty million the following year and on a hundred and forty million the following year and so on. You could keep redeploying that capital at those same returns over time. But there are very, very few businesses like that... we can move that money around from those business to buy more businesses.
Warren Buffet
