Thread by @trengriffin

1/ Warren Buffett yesterday:

"The best results occur at companies that require minimal assets to conduct high-margin businesses – and offer goods or services that will expand their sales volume with only minor needs for additional capital."

Who are these businesses?

2/ Michael Mauboussin describes the types of businesses which rely on intangible assets in this chart from his recent post: morganstanley.com/im/publication…

3/ "Berkshire’s depreciated cost of [its] domestic “fixed assets” is $154 billion....Berkshire owns American-based property, plant and equipment – the sort of assets that make up the “business infrastructure” of our country – exceeding the amount owned by any other U.S. company."

4/ Are Buffett and Munger more likely to buy back Berkshire shares than they are to invest in businesses like Snowflake as Ted or Todd did?

Ted or Todd used the same process created by Munger for BRK in buying the Snowflake shares, but their circle of competence is different.

5/ The shareholder base of Berkshire would shift if Todd and Ted were managing the portfolio instead of Warren and Charlie. Does the letter hint that if current trends continue beating the S&P without circle of competence that includes information technology stocks is unlikely?

6/ If someone already has heavy exposure to information technology stocks is Berkshire a holding that balances a portfolio as part of a "barbell" asset allocation?

Is BRK a substitute for bonds in a barbell for someone with very heavy exposure to FAANGM stocks?