In his most recent letter to Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders, Warren Buffett spelled out some of the biggest reasons many conglomerates have been bad investments over the years, and how Berkshire is different. And it's tough to argue that Berkshire has performed like the typical conglomerate. Its stock has generated 20% annualized returns for investors since 1965, more than twice that of the S&P 500.
Obviously, if it were easy to find the next company that would grow from a small holding company into a half-trillion-dollar conglomerate, everyone would be loading up on shares. Nobody has a crystal ball that can find the next Berkshire, but one company, Boston Omaha Corporation (NASDAQ: BOMN) , seems to be taking Warren Buffett's advice on how a conglomerate should operate.
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1 Company Following Warren Buffett's Rules to Be the Next Berkshire Hathaway