A wonderful nugget of investing wisdom from Buffett and Munger’s recent CNBC interview:
“All businesses eventually die. The essence of investing is to buy businesses that give us back so much in dividends before they die that we get our purchase price back, plus a decent return.”
To see the interview via Twitter, here is the link https://t.co/HOspQiESH9
It’s a simple yet profound point. You allocate your capital to a business on the basis you get your money back before it dies.