Comments on: Is Buffett Losing His Edge? http://www.fwallstreet.com/article/16-is-buffett-losing-his-edge/ Value Investing Blog Mon, 16 May 2011 10:55:06 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Dave http://www.fwallstreet.com/article/16-is-buffett-losing-his-edge/#comment-675 Dave Wed, 31 Oct 2007 06:55:32 +0000 http://www.fwallstreet.com/article/16-is-buffett-losing-his-edge#comment-675 "There's a lesson here for youâ??don't be afraid to invest 21% of your portfolio into a wonderful company" I wasn't afraid to invest MORE THAN 21% of my portfoilio in ONE share of stock = BRKA “There’s a lesson here for youâ??don’t be afraid to invest 21% of your portfolio into a wonderful company”

I wasn’t afraid to invest MORE THAN 21% of my portfoilio in ONE share of stock = BRKA

]]> By: Dave http://www.fwallstreet.com/article/16-is-buffett-losing-his-edge/#comment-664 Dave Mon, 29 Oct 2007 10:53:22 +0000 http://www.fwallstreet.com/article/16-is-buffett-losing-his-edge#comment-664 Buffet himself stated that his role will be split in two. In a recent TV interview he stated the role of investing/capital allocation will go to one of four large mutual fund managers who said they would come tomorrow to run the Berkshire portfolio. That makes sense. Buffet himself stated that his role will be split in two. In a recent TV interview he stated the role of investing/capital allocation will go to one of four large mutual fund managers who said they would come tomorrow to run the Berkshire portfolio. That makes sense.

]]> By: Joe Ponzio http://www.fwallstreet.com/article/16-is-buffett-losing-his-edge/#comment-369 Joe Ponzio Tue, 02 Oct 2007 06:42:30 +0000 http://www.fwallstreet.com/article/16-is-buffett-losing-his-edge#comment-369 Berkshire owns some of the greatest investments in the world. Munger and Buffett will certainly choose a worthy successor. Still, no successor will be able to employ $200 billion at super-high rates of return. Even Buffett himself is having a problem doing so. Over the next 40 years, Berkshire will continue to be a great company. Its growth will certainly slow because it has to acquire super-large companies and each position it acquires has a smaller and smaller impact on its overall portfolio. As Berkshire continues to swell, its growth rate will eventually level out to be close or equal to the overall growth rates of its internal businesses. When that finally happens (be it two or ten years from now), you can likely expect a 10% to 12% long-term return - or whatever the internal growth rates of its aggregate businesses are. Keep in mind: An arbitrage play that brings in $100 million is wonderful - except when that $100 million only brings your $220 billion portfolio up a mere 0.0455% - at which point you need to ask: Is this arbitrage play even worth the risk and/or time and/or effort? That is likely a question that Buffett is finding himself asking a lot these days. Berkshire owns some of the greatest investments in the world. Munger and Buffett will certainly choose a worthy successor. Still, no successor will be able to employ $200 billion at super-high rates of return. Even Buffett himself is having a problem doing so.

Over the next 40 years, Berkshire will continue to be a great company. Its growth will certainly slow because it has to acquire super-large companies and each position it acquires has a smaller and smaller impact on its overall portfolio. As Berkshire continues to swell, its growth rate will eventually level out to be close or equal to the overall growth rates of its internal businesses.

When that finally happens (be it two or ten years from now), you can likely expect a 10% to 12% long-term return – or whatever the internal growth rates of its aggregate businesses are.

Keep in mind: An arbitrage play that brings in $100 million is wonderful – except when that $100 million only brings your $220 billion portfolio up a mere 0.0455% – at which point you need to ask: Is this arbitrage play even worth the risk and/or time and/or effort?

That is likely a question that Buffett is finding himself asking a lot these days.

]]> By: Sanjay Shetty http://www.fwallstreet.com/article/16-is-buffett-losing-his-edge/#comment-362 Sanjay Shetty Mon, 01 Oct 2007 03:37:33 +0000 http://www.fwallstreet.com/article/16-is-buffett-losing-his-edge#comment-362 Just can't help but comment on the comment above. I feel the Berkshire tradition will definitely continue, if Wall st however views the transition temporarily as bad, that would be a brilliant buying opportunity. Just my two bits :-) Regards, Sanjay Shetty I blog at: http://indiainvestor.wordpress.com/ Just can’t help but comment on the comment above. I feel the Berkshire tradition will definitely continue, if Wall st however views the transition temporarily as bad, that would be a brilliant buying opportunity. Just my two bits :-)

Regards,

Sanjay Shetty

I blog at: http://indiainvestor.wordpress.com/

]]> By: augustabound http://www.fwallstreet.com/article/16-is-buffett-losing-his-edge/#comment-358 augustabound Sun, 30 Sep 2007 04:11:28 +0000 http://www.fwallstreet.com/article/16-is-buffett-losing-his-edge#comment-358 Oh to have problems like that,lol' What are your thoughts on BRK after Uncles' Warren and Charlie aren't around anymore? I have complete faith that they will choose successors who will continue the great Berkshire traditions, but it might be more about how Wall St views the transition. Your thoughts? Oh to have problems like that,lol’

What are your thoughts on BRK after Uncles’ Warren and Charlie aren’t around anymore?

I have complete faith that they will choose successors who will continue the great Berkshire traditions, but it might be more about how Wall St views the transition.

Your thoughts?

]]>