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Warren buffet often mentions in his interviews that the sorts of small size deals that they used to pursue when Berkshire was smaller just sont move the needle
by vikramkr 7y ago
Warren buffet often mentions in his interviews that the sorts of small size deals that they used to pursue when Berkshire was smaller just sont move the needle enough anymore to be worth investing into. It's an interesting example of how we dont analyze absolute values of dollar return on investment or truly analyze all opportunities and invest in all NVP positive ones even if seemingly very small (though I guess a seed stage investor is a good counterexample) - and that we aren't always the greatest at evaluating the power laws that drive startup investing. Those same power laws apply to these internal corporate projects as well. I wonder what a company comfortably able to stomach investing in small things that dont seem to be able to "move the needle" enough to be worth it would look like - the biggest example I can think if might be AWS where a small thing turned into a huge business, could we be seeing more of that if companies were managed and capital was deployed a bit differently?