Capital Increasing Is a Key to Compounding Earnings Growth

The journalists and the analysts too have given Charlie and Morin no hint of what they're going to ask so they will be learning for the first time what that's going to be also this question comes from Eli Moises in your 1987 letter to shareholders you commented on the kind of companies Berkshire like to buy those that required only small amounts of capital. Today the company has changed its strategy it now invests in companies that need tons of capital expenditures are over regulated and earn lower returns on equity capital why did this happen? "It's one of the problems of prosperity the ideal business is one that takes no capital but yet grows"