Warren Buffett Is Getting Soft


For the last several centuries, the Oracle and his trusty sidekick have made a point of eschewing capital-intensive businesses. But like Scotch and warm milk, some things can only be appreciated with age, especially when they are contributing 40% of your net profit.

“Charlie and I for decades said that the best businesses don’t need capital and that’s still the case. But we’ve reached a point in Berkshire’s life where we also are quite satisfied with businesses that require capital as long as they provide a decent rate of return.”

Buffett, Not a Fan of Capital-Heavy Firms, Spends $12B on Them in 2014 [WSJ MoneyBeat]