Buffett in a small pool

[6/7/05] If Buffett had a small pool of money (like a measly $10 million), he would apparently be in small caps making 50%+ a year.

What would Munger do if he were running a small pool of capital?

[7/14/05] Here's another link about Buffett making 50% (from Whitney Tilson's principles of sound investing). Tilson says he mentioned it at the 1999 annual meeting.

[7/14/05] One more. Here it says Buffett said it in a Business Week report in 1999. I see that Buffett was the cover story of the July 5, 1999 issue of Business Week and the specific article was titled Homespun Wisdom from the 'Oracle of Omaha'.

"If I was running $1 million today, or $10 million for that matter, I'd be fully invested. Anyone who says that size does not hurt investment performance is selling. The highest rates of return I've ever achieved were in the 1950s. I killed the Dow. You ought to see the numbers. But I was investing peanuts then. It's a huge structural advantage not to have a lot of money. I think I could make you 50% a year on $1 million. No, I know I could. I guarantee that."

"The universe I can't play in [i.e., small companies] has become more attractive than the universe I can play in [that of large companies]. I have to look for elephants. It may be that the elephants are not as attractive as the mosquitoes. But that is the universe I must live in."

[10/10/05] Shai's attempt

[11/14/05] mike_3772 over at chucks_angels observes that there are "two Warren Buffetts. There's the public Buffett telling MBA students to invest in 20 punches and sit on their butts. Buy moats at a reasonable price. Then, there's the private Buffett who's still buying what's cheap and selling it when it gets to reasonable."