What Is a Crummy Business?

As long as a crummy business does not take capital, it may be safe to invest in a crumming business than you think. Buffet made a lot of money investing a lot of shrinking businesses. Where he made mistakes was putting more capital into a business that wasn't good. If you can keep taking money out of a shrinking business, it may not be that big of a problem. And it' certainly may. A shrinking business that takes no more capital and an average business that takes capital may not have that differet returns than you thought.