Berkshire Hathaway's Gigantic Size Limits Prospects for Outsized Returns, Though Cash Pile Offers Flexibility

Berkshire Hathaway's size makes it difficult to find investments that can move the needle and drive outsized returns
Many potential acquisition targets are overvalued in Buffett's view
Berkshire's mix of businesses have decent prospects but Buffett tempers expectations of market-crushing returns going forward
Berkshire's $167B cash pile positions it to capitalize on market opportunities, though Buffett notes big opportunities are rare
Berkshire likely to deliver returns a bit better than the average corporation, but massive outperformance is unlikely