Cmon thats not fair to Warren Buffett. He has been underperforming the market in terms of price per share, but the reason is because of the insurance scandals and the large cash pile on his balance sheet. In fact stockprice has nothing to do with intrinsic value. If you want to see how Buffett is performing check out his BOOK VALUE growth not his price per share growth.
Can buffett perform in todays market? Most definetely, he would switch over and play arbitrage in a market like this.
Name another stock that has outperformed buffett's stock in the last 40 yr time frame.
1965- BRKA $20 price per share Today BRKA $83,500 price per share
1965- BRKA bookvalue $24 per share Today BRKA bookvalue $56,159.33 per share
Also there is a difference between a person who invests with just a couple hundred thousand dollars and one who invests with tens of billions of dollars. Of course you will be risk adverse, the more money you invest with.