Is Buffettism Bad News For Investors?

Is Buffettism a bad thing for us? And to start with what the heck is Buffettism ?!

Earlier this week, the Financial Times published an article by Robin Harding, the paper's Tokyo Bureau Chief, which claims Warren Buffett has broken American capitalism thanks to his desire to buy high-quality businesses, that have little competition and don't take excessive risks.

The article claims that the "beating heart of Buffettism " is to "avoid competition and minimise capital investment in the real economy." Corporate America has taken these lessons to heart. Recent studies from Economists Jan de Loecker and Jan Eeckhout, as well as Germán Gutiérrez and Thomas Philippon, show a rise in corporate markups, a measure linked to profit margins, from 18% in 1980 to...