BERKSHIRE HATHAWAY, what is going to happen? Could there someday be a super company? Is it POSSIBLE?

Question

I am thinking what if one of the holding companies like hathway DECIDES TO BUY EVERYTHING like they buy out Wal-mart then use those profits and TAKE OVER STARBUCKS then Microsoft then apple, etc. etc. I WOULD BE LIKE WATER GOING down a hill, and is it possible? I was thinking about it and it probably isn't for human and ECONOMIC REASONS but I am not sure, are you? IT would mean way less trading AND MAY MAKE IT HARD TO PROFIT OFF STOCK INVESTMENTS. OPINIONS PLEASE????

Answer 1

First, Buffet, although a long term holder, sells as well as buys. Second, Google for example, just one stock out there, is growing so fast that there is no way the money from Wal Mart will ever be enough to buy it. Basically, it could never happen - he'd have to own everything, and then his company would be called the Wilshire 5000. No one has that much money, even Buffet.

That said, I'm 50% in 18 months on the stock, so works for me.

Answer 2

I don't think Warren Buffet is interested in buying up everything available. By I do think it's possible for another super company to form in the future and attempt to have a monopoly on the market, however it would probably cause the company to lose and sell off many of it's subsidiaries.

Answer 3

Good question. Historically there have been cases of monopoly power. That is probably as close to you can find to what I would call a super-conglomerate.
What has happened to monopolies or large conglomerates is that market conditions change, they become inefficent and lose investors, then have to un-wind by selling off assets and getting back to core businesses, face govt pressure and break-ups (Ma Bell), corruption and internal fraud, pressure/expatriation from foreign govts.
In the 20s there were funds of funds, these were giant holding companies, that controlled material percentages of the public stock float.
Look at Korea, I would say less than 10 companies control a major potion of that country's economic.
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Answer 4

Warren Buffett's investment strategy isn't to buy up everthing in sight, but to maximize the rate of return on the investments that are made. You can't do that by going on a buying bender and snatching up everything in sight.

Mr Buffett's basic strategy is quite simple, really. Buy when everyone else is selling (prices are usually tanking) and sell when everyone else is buying (prices are usually growing irrationally). It's served him very well. I've emulated the style and have significantly improved my rate of return. ;)