Buffett compares his three different types of great, good and gruesome businesses to "savings accounts."
The great business is like an account that
- pays an extraordinarily high interest rate
- that will rise as the years pass.
A good one
- pays an attractive rate of interest
- that will be earned also on deposits that are added.
The gruesome account
- both pays an inadequate interest rate and
- requires you to keep adding money at those disappointing returns.