Subject: Re: The Berkshire Problem
An equally weighted portfolio of the 200 highest ROE firms in the S&P 1500, rebalanced quarterly, beat the S&P 500 by 4.0%/year in the last 30 years after trading costs, with vastly lower single-company risk.

Thanks, Jim.

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?