Warren Buffett is a pretty good investor. He’s also a very different investor from you or I – in many ways. With Berkshire Hathaway becoming Bank of America’s largest shareholder, it’s worth looking at one of those differences from a typical investor. When you or I invest in a company, we pretty much get what we get. I can’t call Tim Cook and offer suggestions about the next iPhone (I mean, I could – but I doubt Tim Cook would take my call). We’re along for the ride. Warren Buffett, and Berkshire Hathaway, are not along for the ride. Tim Cook would be more than happy to take Warren’s call – and he would seriously consider what they discussed. A lot of people seem to think about Berkshire Hathaway as something akin to a mutual fund, with Warren Buffett as the masterful portfolio manager figuring out which companies will beat the market. This is the wrong mental model. Berkshire Hathaway is a conglomerate. They invest in or buy businesses in multiple industries – and then help them operate more effectively. In a lot of cases, conglomerates end up subtracting value, but Berkshire Hathaway sure seems to be doing a good […]
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