YouTube video by Kardec Trader (May 8, 2023) arguing that Warren Buffett's investing differs from retail value investors because Buffett invests massive sums that let him take controlling stakes and board influence; retail investors lack the capital to control companies, so 'value investing' functions differently for them.
Everyone says, oh, Warren Buffett became a billionaire because he does value investing. Now, what people don't understand is Warren Buffett has billions and billions of dollars, so he's unable to trade stocks. So for him to buy and sell a stock as a retail investor would, it would be much difficult for him to enter exit position. When Warren Buffett goes and enters a company, he takes a huge position where he's on the board, meaning he can call the shots. Now, if we do value investing, we can't really control what the company's going to do. Now, if Warren Buffett is putting in 10, 20, 30, $40 billion to a company and buying up a huge percentage of that company, he can. So he puts himself in a situation where he controls the company. So us as retail investors, we don't have that type of cash to go and invest into a company to control it. So if we can't control it, value investing for us kind of becomes different because now for him, he puts his money and he controls the company.
