Warren Buffett may be the most well know man in business and many people have used his ideas in classrooms and boardrooms alike. In the past 50 years he has used the idea that sprawl is good. It is the idea that he used to build his massive conglomerate, Berkshire Hathaway. The company has been outperforming the stock market for decades but over the past several years has fallen short of beating the average gains.
Buffett has recently stated that while sprawl is good it may not be enough to continue as the company has been before. To me, a novice business person, this makes sense and has a lot to do with diminishing returns. His company is so large that it is hard for all the companies inside to continue growing above average. Basically the company is an example of a mutual fund, and I hope this is not news to anyone but some funds perform better than others.
One thing that I believe will help pull Berkshire Hathaway back out of the "average" stage is it's great reputation. This gives it a competitive advantage over others who run other conglomerates. They will continue to have the advantage in merging and acquiring fast up and coming businesses. Though the last couple of years have been below average I would not put it past Buffett to come up with the strategy to change things for the better.