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Stock Strategist

A Birthday Gift Buffett Would Truly Appreciate

The smaller, nimbler investment portfolio of an individual investor would be a great gift for the Oracle.

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What do you get an octogenarian billionaire investor for his birthday? That's a question that Warren Buffett's friends and family are asking themselves today. We humbly submit that the best gift may be a smaller investment portfolio. Buffett himself has said many times that his biggest challenge is deploying his massive amount of capital.

It's not that the Oracle of Omaha has suddenly lost his confidence in picking stocks. It is because Berkshire has so much money to invest, it must focus on stocks with large market caps because there isn't enough liquidity for the firm to take equity stakes in small firms. The only way to really move the needle is with megadeals like the purchase of Burlington Northern Santa Fe.

Jeremy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.