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Warren Buffett
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See's Candies illustrates Buffett's preference for worthwhile earnings over physical expansion alone. His 2007 shareholder letter explained that the chocolate business had increased the pounds it sold only modestly while generating substantial pre-tax profits and requiring relatively little additional capital. He and Charlie Munger relied on the brand and operating managers developed by others, rather than founding See's. The case helps an owner compare the cash an expansion requires with the return it is likely to produce.
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