The ideal business is one that earns very high returns on capital and that keeps using lots of capital at those high returns. That becomes a compounding machine, Buffett said. So if you had your choice, if you could put a hundred million dollars into a business that earns twenty percent on that capitaltwenty millionideally, it would be able to earn twenty percent on a hundred twenty million the following year and on a hundred forty-four million the following year and so on. You could keep redeploying capital at [those] same returns over time. But there are very, very, very few businesses like that...we can move that money around from those businesses to buy more businesses.

The Snowball by Alice Schroeder