Three Types of Value Creating Companies vs. Value Destructing Companies

1. Can redeploy capital and grow it in early stages of building out such as Wal-mart or Amazon in the past. 2. Can redeploy some of the capital, but return the rest of it such as Lowe's. 3. Capital light and returns all of the capital such as tobacco companies or See's Candy. 1. Cannot reploy capital efficiently and needs more of it such as Berkshire's early mills. 2. A slowly melting ice cube such as cable stations in face of NFLX. 3. Does not have a satisfactory return on capital and has little or no prosect of future growth such as newspapers or B&N.