Many of the individual businesses within Berkshire are able to act with a long term horizon that I think is uncommon within the stock market as a whole. Profits and float are able to be reinvested within Berkshire in a much more tax efficient way than separate companies.
One example is BNSF. Most railroads are on warpath to increase operating margin as much as possible. Cutting routes, laying off staff, and neglecting customer satisfaction are the norm. Imagine being laid off after your company has had its most profitable year ever. These actions are being dictated by institutional investors. BNSF is the only major railroad not taking on precision railroading. It's possible that this will be a failure on BNSF's part, but Berkshire is willing to take the bet and act differently from everyone else on the idea that this will be better long term. Institutional investors are not interested in that.
