It's hard to say though, because the market in which he made his initial chunk of capital is not the same market today, and it's impossible for me to parse out the self-reinforcing effect of "price goes up because Buffett has taken a large stake" versus the sort of fundamentals I'm referring to.
edit : Having said that, I do believe there is a class of people who are able to make money off of the stock market in a way totally unrelated to the reality of the underlying instruments - profiting on churn, market-making, small percentages on massive positions, etc. But I don't think that means the underlying instruments are actually worthless/not tied to real value.
at one point the free money being thrown around then spent on saas, cloud and marketing with fb / google will be pulled back. and then we will see who's naked. it might not be today, it might not be tomorrow, but it will happen.
hence buying a piece of a sound business like buffet does, will win at the end of the day. it's not glamorous but it will win.
The method of Buffet/BH obviously works, but it also seems like it requires a lol it knowledge and skill and patience, otherwise it would be much more popular. Rolling a new mark (or the same marks with a game with a new name) is much easier and reliable for those with less skill.
With a public company there's always going to be a shareholder to sue you for not maximizing profit.
https://www.litigationandtrial.com/2010/09/articles/series/s...
> According to the company, the short-term demands of shareholders conflict with his long-term ambitions.
https://www.investopedia.com/articles/markets/121515/will-el...
> Private companies can sometimes get away with it, as long as the people backing them don't start to see them as investment vehicles like any other public company.
I'm probably just naive or missing something obvious, but fundamentally it doesn't seem obvious to me _why_ public companies should be treated differently as investments. Ostensibly the original reason stocks had value is that when companies were making money, they'd pay dividends, but like you said, this isn't really the mentality anymore. The stock is worth something because someday if the company makes more money, someone will buy it for more money than you paid...but why? So they can sell it when the company is making even more money later? It seems like if companies don't end up eventually paying dividends at some point, there's no reason why the price of the stock should be related to the amount of money the company makes. The only other thing that shares really do is give very limited voting rights, but this seems like it's not remotely worth enough per share given how much you'd need to have to even begin to influence board elections, which in itself is a very indirect way of influencing the company.