But one of the advantages of a Berkshire, it seems to me, is that these captive businesses actually enjoy better opportunities for capital reinvestment than their competitors--they can invest in the other businesses under the Berkshire roof.


This is actually an enormously important aspect of Berkshire's greatness. The head of the subsidiaries are free to reinvest in their (or related business), but their compensation reflects an appropriate charge for retaining this capital. This dynamic is absent for virtually all public companies, who face no penalty for reinvestment, whether wise or not.