Part 7/13:
They acknowledge mistakes happen, but in-depth paperwork review rarely prevents errors. Predicting management quality and future business potential holds far greater weight.
Challenge of Size: Berkshire’s Growth and Future
One of the crucial topics discussed was the difficulty Berkshire faces due to its massive size, around a $360 billion market cap in 2016. Buffett notes that finding acquisitions big enough to truly “move the needle” is increasingly challenging. While Berkshire historically favored non-capital intensive businesses like See’s Candy, its acquisitions have shifted toward massive, capital-heavy companies like BNSF Railway and Precision Castparts, which can significantly impact overall growth.