Monday, August 24, 2009

Fair price for a wonderful company than a fair company at a wonderful price

It's far better to buy a wonderful company at a fair price, than a fair company at a wonderful price. Charlie (Buffett's business partner) understood this early; I was a slow learner. But now, when buying companies or common stocks, we look for first-class businesses accompanied by first-class managements. Good jockeys will do well on good horses, but not on broken-down nags. The same managers employed in a business with good economic characteristics would have achieved fine records. But they were never going to make any progress while running in quicksand.

- Warren Buffett

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