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No. of Recommendations: 12
Wonder if his lack of meaningful capital deployment is, in part, an attempt to separate the wheat from the chaff within his ever widening (and potentially more short term focused) shareholder base.


I'm afraid this argument misses the mark.

The investment case for Berkshire looking forward has to be done independently of Buffett and independent of your degree of belief in Buffett's judgement in the past. As business issues, succession, lack of reinvestment, mediocre capital allocation ( PCP,KHC, OXY etc) and lack of operating business growth are legitimate issues to query with Berkshire. It is also entirely legitimate for a high quality shareholder base to query the constantly mixed messaging vs actions around buybacks over the last 10 years.

Being a high quality shareholder does not mean you don't hold management accountable or change your mind.

Also it makes sense to try to understand why the market could be assigning a steadily decreasing multiple to book rather than to assume it is just a temporary factor which will revert to the values in the past as opposed to trending towards a figure more in line with the average conglomerate.

Would you argue Buffett was a low quality shareholder for not sticking with IBM, airlines etc when the facts changed ?
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