Buffett’s “alpha” was built on an edge you don’t have anymore
Everyone loves to say, “I invest like Buffett.”
Read the letters. Buy great businesses. Hold forever.
But the rules have changed.
Chamath Palihapitiya pointed out something uncomfortable on the All-In podcast:
- Pre-2000, Berkshire beat the market by a wide margin
- After Regulation Fair Disclosure (Reg FD) in 2000, that edge largely faded
Why?
Before Reg FD, markets ran on information asymmetry.
- Management teams could selectively share material info
- Top investors built networks around that access
- If you were in the right rooms, you knew more (and earlier) than everyone else
Buffett is one of the greatest capital allocators ever.
But he also operated in a market with structural advantages that no longer exist:
- Uneven information flow
- Less competition
- Looser rules
Reg FD forced companies to disclose material info to everyone at the same time.
Once that edge disappeared, Berkshire’s returns started to look much closer to the market.
Not because Buffett got worse.
Because the environment changed.
Two takeaways:
1. Stop trying to be 1970s Buffett in a 2026 market.
Reading a few 10-Ks and running concentrated bets doesn’t recreate his edge.
2. Focus on edges that still exist:
Tax-aware strategies and access to private markets where informational asymetries still exist.
The real question isn’t, “How do I copy Buffett?”
It’s: What edge can I have under today’s rules?