We’re so limited now because we can only go into very big companies. Charlie and I are probably familiar with every company in the United States–in a general way–that we can have the kind of position we would need to have [to make a difference in Berkshire Hathaway’s performance].
We look for the ones where we think we know what they’re going to look like in 10 years. If the price gets attractive and we know a little about the management, and we’re quite sure–within a range–what they’re going to look like in 10 years, we’re in our area. We buy them when the prices are right, like Coca-Cola was some years back.
Source: BRK Annual Meeting 1998