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Strategies & Market Trends : Value Investing

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Lance Bredvold

petal

To: petal who wrote (71459)	10/28/2022 2:54:24 PM
From: Spekulatius	2 Recommendations of 78621

Size does matter. Buffett in his early days bought stakes in micocaps where he could acquire a controlling stake often enough. With a controlling stake, he could control the outcome, replace management etc, when things did not go his way. Once he had a few hundred million in funds, this approach was not workable any more, because he simply could not put enough money in these microcaps to matter. Larger cigar but bets did no offer the same margin of safety (more competition). That's why he decided to go GARP. The other reason was that he started to run his operation under an insurance umbrella where concentrated bets into illiquid microcaps would probably cause problems with regulators.

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