Buffett Criteria Why Wonderful Businesses Beat Cheap Ones

Warren Buffett got rich refusing to buy cheap stocks. The whole framework is one rule he wrote down in 1989: a wonderful business at a fair price beats a fair business at a cheap one, because time helps the great company and slowly kills the mediocre one. The clearest proof is See's Candies, where Berkshire reinvested about $32M over 35 years and pulled out roughly $1.35B in pre-tax earnings, which is what a real moat plus high returns on capital actually buys you. My honest take: most people copy the cheapness and skip the patience, and that's exactly backwards. Research and education, not advice. #investing #valueinvesting #warrenbuffett #stocks

Added 15 Aug 2026