Not all businesses are created equal

Published: 02nd Dec 2024

Discover Warren Buffett’s simple framework to spot great investments: The Great, the Good, and the Gruesome.

Forget how they make money – focus on how much they keep and grow, or you're just funding their office snacks.

Don’t obsess over business models

A great business is one that turns ₹1 into a profit factory while spending less than you do on coffee.

What makes a great business?

Think of it as a treadmill—steady returns, but you have to keep running (read: reinvesting) to get anywhere.

Good, but not great

A toxic mix of fast growth, low returns, and endless cash-draining needs. Like pouring money into a black hole, but with zero interest.

Gruesome and capital-hungry

Great → Compounds wealth effortlessly Good → Sweats for returns Gruesome → Sets your cash on fire.

Key takeaway

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