No. of Recommendations: 5
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.
At the risk of revealing my ignorance, wouldn't it be feasible to set up an intelligently designed array of subsidiary domains for the purpose of acquiring and managing sets of smaller companies? It seems to me that might effectively resolve the dilemma of having to meaningfully move the needle via giant acquisitions.
Tom
