Berkshire Has Lost Its First Love

10.05.2016 • Investing

From The Price of Everything (Independent) – The shareholders of Berkshire Hathaway have just celebrated their latest ‘Woodstock for capitalists’ in the form of the company’s annual general meeting. Fund manager Jeffrey Miller of Eight Bridges Capital Management made the following comments having watched Berkshire’s webcast, which found their way into Barron’s: “The most interesting part was when he was asked why Berkshire had changed from investing in companies with high returns on capital and no-or-low capital requirements to those that require massive amounts of capital, like railroads and pipelines. His answer: because Berkshire is too big now to invest in those great low-capital businesses (even though they are superior to what he is buying recently and are what created the track record of which so many are envious).”

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