He explained this with an example, ‘If the business earns 6 per cent on capital over forty years and you hold it for those forty years, you’re not going to make much different than a six percent return—even if you originally buy it at a huge discount. Conversely, if a business earns 18 per cent on capital over twenty or thirty years, even if you pay an expensive looking price, you’ll end up with one hell of a result.’
