THE WARREN BUFFETT QUOTE I ABIDE BY

There’s a quote from Warren Buffett that’s stuck with me for years:

“The ideal business is one that generates a lot of cash which can then be reinvested at a double-digit rate of return. If you find such a business, you should go ALL IN.”

That’s not just a powerful idea—it’s a filter.

It’s how I look at every business, every investment, and every opportunity I come across.

What Makes a Business Worth Building?

Most people chase income or headlines. Buffett chases compounding.

He’s looking for:

• Cash-heavy operations (not just paper profits)

• That require minimal additional input

• Where every dollar of profit can be put back in to earn even more than the last

Think about that for a second…

If you found something that could reliably turn $1 into $1.13… then do it again… and again… how fast would that add up?

That’s how empires are built—not through flash, but through discipline.

The Power of Reinvestment

Most businesses make money and then spend it.

The best ones make money and then redeploy it—into more inventory, more customers, more deals, more growth. With each cycle, they build momentum. And with momentum comes wealth.

If you’re thinking about starting a business, buying into one, or backing an operator, this is the question to ask:

“Can this business produce cash, and can that cash be reinvested at a high return without hitting a wall?”

If the answer is yes—you might’ve found your compounding machine.

What This Means to Me

I use this exact lens when evaluating everything in my portfolio.

And it’s why I’ve chosen to go all in on building 42 Solutions.

For me, it’s the closest thing I’ve found to what Buffett is describing:

A business that generates steady cash flow, and gives me full control to reinvest that cash into more deals with double-digit returns.

It’s not fancy. It’s not loud. But it works.

And I believe that’s the kind of business worth building.

If you’re building your own flywheel right now—whether you’re flipping houses, launching a business, or backing a founder—I hope this frame of mind helps you stay focused on what really matters.