Business Quote by Warren Buffett
“I'd rather have a $10 million business making 15 per cent than a $100 million business making 5 per cent.”
About This Quote
A smaller business with higher profit margins can be more valuable than a larger one with low margins.
In simple terms: Profitability beats size.
Key Takeaway
Margin matters more than scale.
Themes
business
profitability
investment
strategy
Mood
pragmatic
analytical
Type
financial
advice
When to use this quote
- investment analysis
- startup valuation
- corporate strategy sessions
Key Concepts
value creation
financial efficiency
Practical Applications
- focus on margin improvement
- evaluate ROI over revenue alone
Questions to Reflect On
- When should a company prioritize growth over margin?
- How do market conditions affect this trade‑off?
A Different Perspective
Scale can bring economies of scale that offset low margins in some industries.
![“[S]ometimes, when you are a food person, the possible irrelevance of what you are doing doesn’t cross your mind until it’s too late. (Once, for example, when I was just starting out in the food business, I was hired by the caper people to develop a lot of recipes using capers, and it was weeks of…” quote by Nora Ephron](https://sms4smile.com/quotes/img-quotes/d79/nora-ephron-1217_business_s-ometimes-when-you-are-a-food-person-th_980.jpg)
![“If the State does not acquire supremacy over [vast private] enterprises, it becomes their puppet, and they become the real State.” quote by Bertrand Russell](https://sms4smile.com/quotes/img-quotes/bad/bertrand-russell-69_acquire_if-the-state-does-not-acquire-supremacy_1379.jpg)