--- title: "Meaning & Key Takeaway of: I won't close down a business of…" description: "\"I won't close down a business of subnormal profitability merely to add a fraction of a point to our corporate returns. I also feel it inappropriate for..." image: "https://sms4smile.com/quotes/i/885/warren-buffett-183_adam_i-won-t-close-down-a-business-of-subnorm_980402.png" --- # I won't close down a business of subnormal profitability… ![“I won't close down a business of subnormal profitability merely to add a fraction of a point to our corporate returns. I also feel it inappropriate for even an exceptionally profitable company to fund an operation once it appears to have unending losses in prospect. Adam Smith would disagree with…” quote by Warren Buffett](https://sms4smile.com/quotes/i/885/warren-buffett-183_adam_i-won-t-close-down-a-business-of-subnorm_980402.png) [Download](https://sms4smile.com/quotes/i/885/warren-buffett-183_adam_i-won-t-close-down-a-business-of-subnorm_980402.png) [Open image](https://sms4smile.com/quotes/i/885/warren-buffett-183_adam_i-won-t-close-down-a-business-of-subnorm_980402.png) > “I won't close down a business of subnormal profitability merely to add a fraction of a point to our corporate returns. I also feel it inappropriate for even an exceptionally profitable company to fund an operation once it appears to have unending losses in prospect. Adam Smith would disagree with my first proposition and Karl Marx would disagree with my second; the middle ground is the only position that leaves me comfortable.” [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. He argues that a business must be profitable before investing further, and that even highly profitable firms should not fund perpetually losing operations, seeking a balanced stance. **In simple terms:** Only invest in profitable businesses; avoid funding endless losses. Key Takeaway Prioritize profitability over marginal returns. Themes profitability investment balance risk management Mood pragmatic analytical Type business strategic When to use this quote - corporate finance - budgeting - strategic planning - investment decisions Key Concepts economic rationality shareholder value strategic restraint Questions to Reflect On - Is a losing division ever worth keeping for strategic reasons? - How do you define “acceptable” loss? A Different Perspective Ignoring long‑term strategic value can limit growth. ★ ★ ★ ★ ★ No ratings yet [Business](https://sms4smile.com/quotes/about/business/) [Company](https://sms4smile.com/quotes/about/company/) [Customer](https://sms4smile.com/quotes/about/customer/) [Loss](https://sms4smile.com/quotes/about/loss/) [Middle ground](https://sms4smile.com/quotes/about/middle-ground/) [Unending](https://sms4smile.com/quotes/about/unending/) ## Related quotes > [My thing is to have a good, profitable company, for it to be 100% owned independently.](https://sms4smile.com/quotes/damon-dash/my-thing-is-to-have-a-good-profitable-company-for-it-to-be-100-owned/) [Damon Dash](https://sms4smile.com/quotes/author/damon-dash/) > [We were hoping to build a small profitable company; and of course, what we've done is build a large, unprofitable company.](https://sms4smile.com/quotes/jeff-bezos/we-were-hoping-to-build-a-small-profitable-company-and-of-course-what/) [Jeff Bezos](https://sms4smile.com/quotes/author/jeff-bezos/) > [We set no volume goals in our insurance business generally-and certainly not in reinsurance-as virtually any volume can be achieved if profitability standards are…](https://sms4smile.com/quotes/warren-buffett/we-set-no-volume-goals-in-our-insurance-business-generally-and/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Buy companies with strong histories of profitability and with a dominant business franchise.](https://sms4smile.com/quotes/warren-buffett/buy-companies-with-strong-histories-of-profitability-and-with-a/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [Getting to profitability does not mean all our problems are solved.](https://sms4smile.com/quotes/julia-hartz/getting-to-profitability-does-not-mean-all-our-problems-are-solved/) [Julia Hartz](https://sms4smile.com/quotes/author/julia-hartz/) > [We oppose all corporate welfare, whether we benefit or not. 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We worship our work, we worship our clients and we…](https://sms4smile.com/quotes/shailender-singh/i-don-t-care-about-awards-and-public-image-we-know-the-business-of/) [Shailender Singh](https://sms4smile.com/quotes/author/shailender-singh/) > [“Competition on dimensions other than price - on product features, support services, delivery time, or brand image, for instance - is less likely to…](https://sms4smile.com/quotes/michael-e-porter/competition-on-dimensions-other-than-price-on-product-features/) [Michael E. Porter](https://sms4smile.com/quotes/author/michael-e-porter/) ## More by Warren Buffett > [To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information. 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Active trading, attempts to "time" market movements, inadequate…](https://sms4smile.com/quotes/warren-buffett/investors-of-course-can-by-their-own-behavior-make-stock-ownership/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) [Explore all 984 Warren Buffett quotes ](https://sms4smile.com/quotes/author/warren-buffett/) ## More Adam quotes > [Women rule the world. It's not really worth fighting because they know what they're doing. Ask Napoleon. Ask Adam. 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And what had he done? Let her get away. Undermined by his disgusting human anatomy. It had just been…](https://sms4smile.com/quotes/karen-marie-moning/finally-someone-had-seen-him-and-what-had-he-done-let-her-get-away/) [Karen Marie Moning](https://sms4smile.com/quotes/author/karen-marie-moning/) > [“I’d think there are degrees of greatness,” Adam said. “I don’t think so,” said Samuel. “That would be like saying there is a little…](https://sms4smile.com/quotes/john-steinbeck/i-d-think-there-are-degrees-of-greatness-adam-said-i-don-t-think-so/) [John Steinbeck](https://sms4smile.com/quotes/author/john-steinbeck/) > [An ineffably holy God, who has the utmost abhorrence of sin, was never invented by any of Adam's descendents.](https://sms4smile.com/quotes/arthur-w-pink/an-ineffably-holy-god-who-has-the-utmost-abhorrence-of-sin-was-never/) [Arthur W. 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