How do the past performances of Berkshire Hathaway logically refute the idea that increasing assets under management makes sustained alpha more difficult?
This case demonstrates the importance of investment structure and mandate flexibility, not a universal invalidation of the size constraint.
A traditional fund cannot acquire an entire company like Burlington Northern Santa Fe to generate performance, which is an option for Berkshire Hathaway.
The ability to control market noise and execute unique acquisition strategies is a differentiating factor.
The impact of size is a matter of discipline and investment posture, not an absolute fate for entities with adequate leverage.