Warren Buffett: Incremental capital

“We’d love to have a business that could earn 20 percent on a hundred million now. And if we put a billion more in it, it would earn 20 percent more on that billion. But…those businesses are so rare. There are a lot of promises of those businesses, but we’ve practically never seen one. There’ve been a few. Most of the great businesses generate lots of money. They do not generate lots of opportunities to earn high returns on incremental capital.” –Warren Buffett. 

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