The Retention of Earnings Beyond Dividends

Berkshire Hathaway's annual letter this year pointed out that Berkshire has become a leader in real estate brokerage in the United States. That is a significant feat in less than 20 years. But let me mention a sticky point. If these charged by stock market active managers are a drag on investor performance I would argue that real estate commissions are no difference and perhaps more detrimental especially when one considers the lifetime effects of large foregone up front cash flows or compounding interest.