is your own earning power, if you are the top lawyer, as inflation
goes on you willing get paid more and more and not have to put large
capital into it. The worst businesses are the ones with big
receivables and inventories that need high capital investments,
usually we are not attracted to utilities and railroads. RR will have
a right to the increase in economic prosperity. We were doing to
$30MM business on $9MM capital now $300MM on $40MM, it has made us
1.5B in that period. if candy prices double, and it is much better
investment o have if you have inflation.
CM- we didn't always notice, and sometimes we forget, continuous
learning is always necessary.
WB _ i am better investor because i am abuisness man and a better
businessman becuase i am an investor. Fortune 1977 article how
inflation swindles the equity investor. the best inflation hedge is a
royalty with no fixed capital needs, not inventory no a/r no capes. we
are going into high capes businesses because we cant deploy this much
money, there are not enough Sees candies, there is a real disadvantage
to size.
Sent from my iPad
