Berkshire Hathaway's historical annual return of 19.7% is an undeniable fact, but with fresh eyes, would we invest today in this same model knowing the impact of size on alpha?
The notion that historical growth has not been compromised by increasing size is a classic case of sunk cost; the market has evolved.
Large-scale opportunities capable of absorbing billions are inherently limited, making sustainable outperformance more complex.
Even Buffett has admitted that finding "elephants" is increasingly difficult; for example, the Japanese market does not offer the liquidity needed for such allocations without impacting prices.