You make solid observations but there are good explanations for this.
1) Investment opportunities are inversely related to the size. Buffet has constantly warned shareholders that as the size of the company grows, it becomes harder and harder to find good investments. Assuming he can analyze only fixed number of companies, we should expect that there is less potential companies to buy. Buffet has changed his investment strategies several times to reflect changes in his opportunities.
2) Timing. BRK is a company with incredible patience. If you compare SP500TR and BRK over decades, you notice that BRK makes permanent break from SP500 during stock market crashes and long recessions. During stock market booms BRK starts to lose to to the inflated market prices.
We are currently riding on the top of 10 year stock market boom. BRK is patiently buying companies with long term steady profits. For example, Buffet is buying energy companies and electricity transmission businesses all over the the west. These companies are geographically linked and there will be benefits from smart grid investments in the future, especially if the future is solar.
1) Investment opportunities are inversely related to the size. Buffet has constantly warned shareholders that as the size of the company grows, it becomes harder and harder to find good investments. Assuming he can analyze only fixed number of companies, we should expect that there is less potential companies to buy. Buffet has changed his investment strategies several times to reflect changes in his opportunities.
2) Timing. BRK is a company with incredible patience. If you compare SP500TR and BRK over decades, you notice that BRK makes permanent break from SP500 during stock market crashes and long recessions. During stock market booms BRK starts to lose to to the inflated market prices.
We are currently riding on the top of 10 year stock market boom. BRK is patiently buying companies with long term steady profits. For example, Buffet is buying energy companies and electricity transmission businesses all over the the west. These companies are geographically linked and there will be benefits from smart grid investments in the future, especially if the future is solar.