The idea that asset growth automatically negates the ability to generate alpha ignores the unique strategies that maintain performance.
Ask yourself if, without the prior investment in the thesis of 'size as a barrier,' we would have this hasty conclusion about Berkshire Hathaway's historical performance.
Their success relies on an investment approach that is not limited to small caps alone but on acquiring quality companies at scale, such as the purchase of Burlington Northern Santa Fe.
Would we have the same opinion if we had not already invested our attention in this reductive framework?