Berkshire Has Entered a New Era as Warren Buffett Continues to Step Into the Background
While Berkshire Hathaway's operating businesses have generally provided the firm with a narrow moat on a combined basis, it has been management's ability to produce additional excess returns from the cash flows thrown off by its disparate operations that had historically pushed our moat rating into wide territory. That said, a wide moat rating became much harder to justify over time, given the inability of the firm to generate outsize returns on a consistent basis with its investments, as well as the slippage seen in some of the moat sources that support the economic moats in a few of its main operating businesses.
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