Buffett: Avoid Bad Businesses

Question: What businesses should we avoid?

Buffett:

In the textile industry, we always had new machinery that held the promise of increasing our profit, but it never did because everyone else bought the same machinery. It was sort of like being in a crowd, and everyone stands on tip-toes – your view doesn’t improve, but your legs hurt.

Source: BRK Annual Meeting 2004 Tilson Notes

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