Subject: Re: Buybacks have begun
What am I missing?

In my amateurish view: Nothing, apart from regarding Abel managing this huge portfolio the fact that he still has Warren in the background - though unfortunately not forever.


One further issue is size. It is hard to see how a $1.1 trillion conglomerate dedicated to growing by shrewd acquisitions can prosper when there are only 220 companies with market caps over $100b, or 110 US companies, Berkshire’s usual hunting ground.

The fact that even the great Buffett appears to have been stymied by this situation makes it all the less likely that it will be solved by the new guy.

The only solution I can see is to reduce the size of the company. There is certainly a wonderful opportunity to do that when you have $373b in cash in the coffers - a Dutch auction for a third of the company would be a great start, and some additional stock portfolio sales and a commitment to keep buying more shares up to a price closer to intrinsic value (although still under) would allow for continuing the process.

But I am not holding my breath. The ongoing presence of Buffett himself and the other guardians of the culture mean that such a radical departure from Berkshire’s modus operandi has to be a long shot.