How to Maximize Long-Term Capital Growth

Berkshire CEO Warren Buffett says the conglomerate form is an ideal structure for maximizing long-term capital growth. A conglomerate such as Berkshire is perfectly positioned to allocate capital rationally and at minimal cost, he writes. If horses had controlled investment decisions there would have been no auto industry, according to Buffett. He adds: "There are worse things in life than having a prosperous business that understands one well"