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Which leads me to a question I've never seen asked of Mr. Buffett. Given what he has said repeatedly about the burden of capital and the opportunities in obscure small companies, if he were a young investor with less than $5 million today, would he invest anything meaningful (or anything at all) in a company of the size and scope of Berkshire Hathaway? I don't think he would. It would be interesting to hear.

That would be an interesting question. Today? Maybe not. But value is value and five years ago at half the market cap, but still far from some undiscovered, uncovered small cap. Why not? All considered and for someone with the ability to size up value. Especially since 5 million dollars isn't the capital burden Buffett deals with today.

It would be interesting to hear his thoughts on where he would be looking if he had 5 million and was starting out.

I don't think Buffett believes that information creates substantially more efficiency.

He says it's temperament that matters most, assuming reasonable intelligence. Certainly see precious little evidence that the flood of information, including that from things like Reg FD, has improved efficiency or the all important temperament of the investor, including the ability to ignore the crowd, that Buffett mentioned.

Perhaps because the average investor ignores alot of the information. Perhaps because a little knowledge is a dangerous thing. Either way, temperament is what matters, whether you are fishing in the small, medium or large cap pond. Personally over the long run, don't think the size of the pond matters as much as the inherent temperament and a few learned skills of the fisherman. The average retail investor doesn't use the advantages s/he has and it shows in the results.

For example, the experience of, that supposedly weeds out the best of the best of tens of thousands of individual investors and the top 50 run the fund. Reverting to the benchmark in no time, for whatever reason.

Hopefully the young Buffett starting out could have spotted large cap Brk value five years ago. Would be interesting to hear what he would say about that today.

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