MITSY - Buffett's Surprising New Moves Fit His Core Principle: Have An Edge

• Two recent Buffett actions may seem out of character: a $6.5 billion investment in stodgy Japanese trading companies and a $500 million investment in hot IPO Snowflake; what's up?
• Buffett formed many lifetime principles as a 16-year-old horse handicapper, including the importance of information, sizing bets, and having an edge over the opposition.
• This applied in his "cigar butt" years, his blue chip ROIC years, his use of insurance float, his utility/railroad acquisitions, and his deals; in all cases he had an edge.
• Despite striking out in new directions his recent actions each involved an edge which improved upon the ordinary odds and applied such racetrack/casino principles as properly sizing bets.
• Buffett's greatest edge may be in knowledge stemming from Berkshire itself, both for buybacks and for buying assets such as Dominion's pipelines for which Berkshire Hathaway Energy provided an information advantage.

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