Noah Buhayar on the news that Berkshire Hathaway likely failed to increase net worth more rapidly than the Standard & Poor’s 500 Index during the past five years:
Missing the mark in the last five years would highlight how difficult the billionaire’s task has gotten with his company’s expansion. Takeovers and stock picks have built Berkshire into a business with dozens of operating units and equity investments valued at more than $100 billion. That means future gains have to be bigger in absolute terms to increase book value by the percentage amounts of years past.
It seems that Warren Buffett is running into the same “problem" that Apple faces. Because they’ve both built such massively successful businesses, they’re nearing the limits of possible growth. They are both true “victims” of their own successes.