Warren Buffett: Really wonderful businesses

“A really wonderful business is very well protected against the vicissitudes of the economy and competition over time. And I’m talking about businesses that are resistant to effective competition. Three of those will be better than 100 average businesses. And they’ll be safer. There’s less risk in owning three, easy-to-identify, wonderful businesses than in owning 50 well known and big businesses. Bad things won’t happen to those three. That’s one of the characteristics of a wonderful business. If my own family’s fortunes for the next 30 years were dependent on the income from a group of businesses, I can assure you that I’d rather pick three businesses from those we own than own a diversified group of 50.”

—Warren Buffett.