You are closer to the truth than the author of the story. Buffett looks at company stock as an option to buy the company. He buys shares below book value and if need be, he will exercise the option to buy the company and take it private. This puts him in a unique position to raid the board room if they don't play by his rules. This influence on the board and going "all in" when the stock drops in value generates all his Alpha. Lets see if he buys over BYD in Hong Kong - another one of his excellent stock picks down 75% from his entry point.