Berkshire: Too Big to Succeed?

Updated

The most common bear case to make about Warren Buffett's Berkshire Hathaway is that the darn thing is just too big to grow -- at least at rates like it did in the past.

Buffett talks about it himself.

"The giant disadvantage we face is size: In the early years, we needed only good ideas, but now we need good big ideas," Buffett lamented in 1995. "We need 'elephants' to make significant gains now -- and they are hard to find," he said in 2001.


But there are two sides to that story.

In this video, Fool analyst Matt Koppenheffer and I share our thoughts on Berkshire's size dilemma.

Thanks to the savvy of investing legend Warren Buffett, Berkshire Hathaway's book value per share has grown a mind-blowing 586,817% over the past 48 years. But with Buffett aging and Berkshire rapidly evolving, is this insurance conglomerate still a buy today? In The Motley Fool's premium report on the company, Berkshire expert Joe Magyer provides investors with key reasons to buy as well as important risks to watch out for. Click here now for instant access to Joe's take on Berkshire!

The article Berkshire: Too Big to Succeed? originally appeared on Fool.com.

Fool contributor Morgan Housel has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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