Advantage Quote by Warren Buffett
“The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money. Think airlines. Here a durable competitive advantage has proven elusive ever since the days of the Wright Brothers. Indeed, if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down.”
About This Quote
Source Speech: Berkshire Hathaway Annual Shareholder Meeting, 2008
Rapid growth without sustainable profit is a flawed business model; true value needs durable advantage.
In simple terms: Growth alone isn’t enough; profit matters.
Key Takeaway
Seek businesses with lasting competitive edges.
Themes
business
finance
growth
profit
strategy
Mood
analytical
pragmatic
Type
business
financial
When to use this quote
- investing
- startup evaluation
- market analysis
Key Concepts
Economic theory
competitive advantage
Questions to Reflect On
- What metrics reveal true durability?
- How do you assess long‑term profitability?
A Different Perspective
Fast growth can mask underlying weaknesses.
![“Next came the Patent laws. These began in England in 1624; and, in this country, with the adoption of our constitution. Before then [these?], any man might instantly use what another had invented; so that the inventor had no special advantage from his own invention. The patent system changed this…” quote by Abraham Lincoln](https://sms4smile.com/quotes/img-quotes/449/abraham-lincoln-88_adoption_next-came-the-patent-laws-these-began-in_1828.jpg)
