There is one key difference between you and Warren Buffett. Mr Buffett does a thorough analysis of the businesses he buys into. He makes sure that he buys them at very reasonable valuations. He meets the management to figure out whether it is honest and capable. You too may try to do all of these.
But there is one thing you cannot even try to replicate. Unlike Mr. Buffett you cannot buy large stakes in the companies. Retail investors are referred to as 'minority shareholders' in a company. It hardly matters to the management if they disapprove of an M&A activity that the company is pursuing. Or if it is keeping too much cash with itself! Or if it is venturing into unrelated businesses. For the retail investors' voices are those of the minority.
There are only a handful listed entities in India where the non-promoter holding (free float) is more than 50%. However, their number is set to increase. As per a recent listing guideline from SEBI, public shareholding in all companies will have to be brought up to 25% in three years. This will serve investors' interests in two ways. One it will lead to promoters (including the government) diluting their stakes through follow on offers. Two, it will offer minority shareholders more collective voice.
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