He repeatedly emphasized in his letter to think like a "business owner." What does this mean for a small shareholder who only holds 100 shares?

The Meaning of Buffett's "Think Like a Business Owner"

Buffett repeatedly emphasizes in his shareholder letters that investors should think like "business owners," not short-term speculators. This core value investing philosophy encourages shareholders to view stocks as partial ownership in a business, not mere trading instruments. For small shareholders holding just 100 shares, this implies several key insights:

1. View Yourself as a Partial Owner

• Even with a small number of shares (e.g., 100), you should consider yourself the business's "owner." This means focusing on the company’s long-term value and operations, not short-term price fluctuations.
• For example, as a Berkshire Hathaway shareholder, Buffett expects you to assess the company’s intrinsic value—including its business model, management quality, and competitive advantages—just as he does, rather than obsessing over daily stock quotes.

2. Focus on Long-Term Value Over Short-Term Volatility

• Small shareholders often react to market sentiment, chasing trends. But Buffett stresses that thinking like an owner requires ignoring short-term noise and concentrating on profitability, cash flow, and growth potential.
• Holding 100 shares doesn’t diminish your influence; instead, it reminds you that investment decisions should stem from deep business understanding—as if you were running a small company yourself.

3. Cultivate Patience and Rational Decision-Making

• This is especially critical for small shareholders, who may have limited capital and be prone to panic or greed. Buffett advises evaluating as an owner would: If this were a private business, how would you manage it? Would you sell just because the market dips?
• Practical application: Read annual reports, analyze financial statements, and ask: "Is this company’s economic moat durable? Can it sustain returns?"

4. Avoid Speculation; Pursue Compounding Growth

• Buffett teaches small shareholders that investing isn’t gambling but participating in great businesses’ growth. Even modest investments can harness compounding over time.
• For 100-share holders, this means avoiding frequent trading. Instead, "buy and hold" like an owner, letting time become your ally.

In essence, Buffett’s emphasis distills the spirit of value investing. Adopting this mindset helps even small shareholders avoid common pitfalls and achieve steadier returns. It urges everyone to evaluate investments from an "owner’s perspective," transcending share-count limitations to focus on a business’s fundamental value.