Time is the friend of the wonderful business. It's the enemy of the lousy business. If you're in a lousy business for a long time, you're going to get a lousy result, even if you buy it cheap. If you're in a wonderful business for a long time, even if you pay a little too much going in, you're going to get a wonderful result if you stay in a long time.
Interpretation
Time favors good businesses and punishes poor ones.
Warren Buffett emphasizes the importance of time in determining the success of a business venture. A great business will yield positive results over time, regardless of the initial investment cost, while a poor business will lead to unsatisfactory outcomes, no matter how cheap it may seem at first. The lesson is to focus on the quality of the business itself rather than just short-term financial considerations.
In practice
This quote can be used in a business presentation to illustrate the importance of long-term thinking.
I have no views as to where it will be, but the one thing I can tell you is it won't do anything between now and then except look at you. Whereas, you know, Coca-Cola (KO) will be making money, and I think Wells Fargo (WFC) will be making a lot of money and there will be a lot - and it's a lot - it's a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that.
If the world couldn't see your results, would you rather be thought of as the world's greatest investor but in reality have the world's worst record? Or be thought of as the world's worst investor when you were actually the best?
Cash never makes us happy, but it's better to have the money burning a hole in Berkshire's pocket than resting comfortably in someone else's.
I think you should read everything you can. In my case, by the age of 10, I'd read every book in the Omaha public library about investing, some twice. _x000D_ You need to fill your mind with various competing thoughts and decide which make sense.
The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.
One’s objective should be to get it right, get it quick, get it out and get it over. Your problem won’t improve with age.
There is no value with just one restaurant or with one person. The brand has to be bigger than the person.
Big companies have trouble with innovation. Innovation is about bad ideas, or ideas that look like bad ideas. That's the fundamental thing.
All businesses and jobs depend on a vast number of people, often unnoticed and unthanked, without which nothing really gets done. They are all human and deserve respect and gratitude.
By simply capitalizing on core strengths and knowledge, companies and entrepreneurs can engage in an emerging business model that will enable them to create - and demonstrate - real, sustainable social impact in society.
The game business reinvents itself every five years.
In the vast majority of businesses, there is simply no such thing as “the best.”
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