#berkshire hathaway

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.

Michael Moritz:

Berkshire Hathaway, despite a market value now approaching one quarter of a trillion dollars, is managed from a tiny office with a staff smaller than a soccer team’s starting roster. Buffett is not the slave to a corporate calendar jammed with the humdrum inanities of business life like performance assessments, facilities planning, analyst meetings, compliance training, budget reviews and travel. This leaves him time to read and think so that for Buffett the only real difference between a weekday and the weekend is that for for two days the markets are closed. Buffett is no fan of spreadsheets or reams of analytical mumbo-jumbo. Facts, a pen, a sheet of paper and an agile mind are his tools.

A working style, free of bullshit, to aspire to.