A great business is usually awash in cash, carries little or no debt, and is in a great position to either buy its way out of trouble or ride out any downturn in the economy. Mediocre businesses are always struggling for cash and are loaded with debt, and if they get into problems, they usually have to rob Peter to pay Paul, which leads to even more problems. No matter how brilliantly a mediocre business is run, its poor inherent economics will keep it forever anchored to poor results.
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