Charlie Munger: Profit sitting in the yard

“We tend to prefer the business which drowns in cash. It just makes so much money that one of the main principles of owning it is you have all this cash coming in. There are other businesses, like the construction equipment business of my old friend John Anderson. And he used to say about his business ‘You work hard all year, and at the end of the year there’s your profit sitting in the yard.’ There was never any cash. Just more used construction equipment. We tend to hate businesses like that.”
–Charlie Munger.

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