Institutional investors vs. Retail Investors.

When someone as Warren Buffett indicates that he wants to buy a major stake in a company, he gets all the information he wants to see - happily delivered to the doorstep.

Having the possibility to conduct a due diligence, hang out with top management for a few years to understand how they tick, and also getting their core customers to the table - of course someone gets a perfect picture of the company and can make an educated decision.

Also Warren Buffett missed many great opportunities like Nvidia, BTC and others.

None of these is possible for retail investors. All companies, no matter how good they are, how transparent they are, are a black box for retailers.

What can they do?

1. Follow the big guys. What they buy everybody buys.

2. Take very small bets in a wide range of companies. When it is a home run a little bit is all you need. 1% of your assets - a 100x return. You don't need more to be a happy investor. And when it wasn't a winner - the only thing you loose is 1%.

3. Never assume as a retail investor, that you understand a company. You don't. You will never have all necessary information to make an educated guess.

Combine studying people like Warren Buffett, Diversification and Modern Portfolio Theory and you probably get to the point where you make a 10+ % average per year. Which already is pretty good if you deliver it to yourself coonsistently.

Once you get in the 100 Million Networth range, things change and doors to company will open. Then you are in a different game.

But as long as you don't have it...