In a commodity business, it's very hard to be smarter than your dumbest competitor.
Interpretation
In highly competitive markets, it's challenging to outperform competitors who may not have the same level of intelligence or strategy.
Warren Buffett's quote highlights the difficulty of excelling in a commodity business where products are similar and competitors may not apply intelligent strategies. It suggests that in such environments, even those who are less knowledgeable can succeed, making it essential for businesses to innovate and differentiate themselves rather than relying solely on being smarter than their competitors.
In practice
In a business conference discussing market competition.
I have no views as to where it will be, but the one thing I can tell you is it won't do anything between now and then except look at you. Whereas, you know, Coca-Cola (KO) will be making money, and I think Wells Fargo (WFC) will be making a lot of money and there will be a lot - and it's a lot - it's a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that.
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