Subject: Re: The Berkshire Problem
What about valuation of these high ROE firms?
Does the current set have the same over-valuation issue as the S&P500, perhaps even more so?

Well, I'm sure you'll do better if you started such a scheme when things were cheap compared to when things were expensive.
And this would probably not be one of the cheap days.

But the general idea is very Buffettish, combining two of his unrelated ideas in a pretty minimal way:
Over the long run you're simply better off owning the better-quality businesses, and over the long run the broad US market will do well for you.

Think of it the way you would think of someone investing in SPY, just (one hopes/expects) a little bit better long run average return.
The people who buy SPY are not generally the people who worry about starting that purchase on the best possible date.

Jim