Do you understand?

I don't like easy business. Easy business will attract competitors. I like business with moats. I hope to have a castle worth a fortune, and the duke who guards the castle is both virtuous and talented, and there is a wide moat around the castle.

I often tell the managers of Berkshire's subsidiaries to widen the moat. Throw crocodiles and sharks into the moat to keep competitors out. This depends on service, product quality, cost, and sometimes patents or business locations. I am looking for such a business. Where can I find such a business? I look for good businesses from those simple products.

It is actually easy to understand. The current economic situation is good, and the management is both virtuous and talented. For such businesses, I can roughly see what they will be like in ten years. For some businesses, I can't see what they will be like in ten years, so I won't buy them.

For companies like Oracle, Lotus, and Microsoft, I don't understand what their moats will be like in ten years. Gates is the best business wizard I have ever met, and Microsoft also has a huge lead, but I really don't know what Microsoft will be like in ten years, nor can I know exactly what Microsoft's competitors will be like in ten years.

However, I know what will happen to the chewing gum business in ten years. No matter how the Internet develops, it will not change our habit of chewing gum. It seems that nothing can change our habit of chewing gum. There will definitely be more new varieties of chewing gum, but will White Arrow and Yellow Arrow disappear? No.

I imagine myself, if I have $1 billion, can I hurt this company? Give me $10 billion and let me compete with Coca-Cola globally, can I hurt Coca-Cola? I can't. This kind of business is a good business.