The Cult of Warren Buffett
Gary Mishuris's essay on the Buffett cult, blind imitation, and the importance of independent thinking
The Cult of Warren Buffett
Author: Gary Mishuris Published: April 23, 2023 Source: Behavioral Value Investor
Overview
Gary Mishuris reflects on his 20+ years of attending Berkshire Hathaway annual meetings and his departure from the "Cult of Warren Buffett." He argues that while Buffett is worthy of admiration, blind imitation of his quotes without understanding his principles is counterproductive.
Key Themes
The Buffett Litmus Test
Buffett's first question when evaluating any business:
"Can I approximately estimate the key economic variables for the business 10+ years out? If I can't, I pass right away."
This simple principle has saved Mishuris "a lot of trouble over 20+ years of professional value investing."
The Problem with Cultish Behavior
Mishuris identifies classic cult characteristics in the Buffett community:
- Specific language — Buffett-isms repeated without understanding
- Charismatic leader — Buffett as an infallible sage
- Echo chamber — Reinforcing beliefs among followers
- Social status — Bragging about thank-you notes or photos with Buffett
The Irony
"The man who accomplished so much via independent, first-principles thinking is celebrated by blind adulation and imitation."
Buffett himself never blindly quoted Benjamin Graham—he learned and evolved. Yet followers repeat his quotes without the independent thinking that made him successful.
The "Great Business at Fair Price" Misuse
One of the most quoted Buffett-isms:
"I would rather buy a great business at a fair price than a fair business at a great price."
But Mishuris points out this ignores what Buffett actually does:
- Berkshire holds tens of billions in excess capital
- Buffett knows many great businesses
- He hasn't bought them at "fair" prices
- He's waiting for "crazy bargain-level prices"
The lesson: Actions speak louder than quotes.
Conclusion
"He learns from others but thinks for himself. Yet somehow rather than internalize that truth, the cult members are happy enough just quoting him."
Related Concepts
Source
Gary Mishuris, Behavioral Value Investor, April 2023.