"the amount of funds he has to play with makes it harder for him to make above-average returns. Much harder"
Very true. It is also a true reflection of the limits of investment returns. In the corporate world, the investment hurdle rate for significant projects is in the order of 15%. Some projects will earn more until the market matures or competitors move in, some projects will go bust, some industries will disappear through obsolesence, to replaced by new industries. No matter which way you cut it, a nominal 15% seems to be the 'magic' number. And there is no way that the stockmarket can (ultimately) deliver returns greater than what the businesses which comprise it are able to deliver themselves as far as ROE is concerned. Most studies (going back 100 years and more) indicate that the long-term returns from the stockmarket is in the order of 7% real after tax (compound) which equates to a nominal 15% -ish before tax.
Thats all there is in the real world. Buffett's 22% over 50 or so years seems 'unreal'.
