[...] There are things that we stay away from. We're like the man who said he had three baskets on his desk: in, out and too tough. We have such baskets - mental baskets - in our office. An awful lot of stuff goes in the "too tough" basket.
I've heard Warren say since very early in his life that the difference between a good business and a bad one is that a good business throws up one easy decision after another, whereas a bad one gives you horrible choices - decisions that are extremely hard to make: "Can it work?" "Is it worth the money?"
One way to determine which is the good business and which is the bad one is to see which one is throwing management bloopers - pleasant, no-brainer decisions - time after time after time.
Excerpt from Seeking Wisdom: From Darwin to Munger by Peter Bevelin