Warren Buffett, chairman and CEO of Berkshire Hathaway (BRK.B) (BRK.A) , has long been admired for his ability to capture complex economic truths in simple, memorable language. One of his most pointed insights is his assertion that “an iron law of business is that growth eventually dampens exceptional economics.” This message first appeared in his 1985 shareholder letter, but it’s something he has repeatedly reiterated over the past several decades. Most recently, during the 2025 annual shareholder meeting, he reiterated his concerns on the same issue.
During the Oracle of Omaha’s final shareholder meeting, he said ‘It’s too bad that Berkshire has gotten as big as it is because we love that position and I’d like it to be a lot larger than it is.” Continuing along this line, he explained, “We’ve got in the range of $20 billion invested, and I’d rather have $100 billion than $20 billion. Size is an enemy of performance at Berkshire, and I don’t see any good way to solve that problem.”
