Warren Buffett's Small-Cap Value Strategy for Today's Investors

Warren Buffett's early small-cap value investing strategy remains relevant today. His investment partnership delivered an annualized total return of 25.3% from 1957 to 1968, compared with 9.1% for the Dow Jones Industrial Average over the same period. The strategy centers on undervalued small-cap stocks, corporate restructurings, and positions with shareholder influence. The current expansion of passive investing and declining analyst coverage have created pricing inefficiencies in small-cap stocks, establishing market conditions for replicating this strategy.