Author: Steven Davidoff

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Warren Buffett the Legend

Warren Buffett’s financial genius is self-evident. But as Mr. Buffett and Berkshire Hathaway have grown and prospered, Mr. Buffett has done something greater. He has created a legend.

The legend of Warren Buffett is more than genius investor.  It is a legend which encompasses the qualities of sagacity, wisdom, and commonsense. Instead of 300 foot yachts and hundred million dollar homes Mr. Buffett lives a comfortable upper middle class lifestyle which shames the average Russian oligarch.  Where others focus on themselves, Mr. Buffett gives away the bulk of his life earnings to charity.  And Mr. Buffett is always ready to be there for the common man and nation, from fighting for higher tax rates on the wealthy on equity grounds to writing encouraging letters to General Motors in its dark days.

The characteristics which make Mr. Buffett a great person create synergies with his investment acumen.  As I wrote this week in the N.Y. Times, Mr. Buffett’s aura enables him to be a dealmaker without parallel.  Boards and investors appear to give Mr. Buffett better deals simply because he is Warren Buffett, and these parties want to be associated with Mr. Buffett’s magic. In other words, merely being Warren Buffett creates value for Berkshire Hathaway on a scale Donald Trump can only dream of.

Maintaining this well-deserved reputation is paramount for Mr. Buffett, which is why he took the alleged insider trading controversy with Lubrizol and David Sokol so hard.  To have worked so many years and see it possibly risk taint is not an option.

It is here that we come to The Essays of  Warren Buffett.  Simply put, the legend of Mr. Buffett is enhanced and promulgated through his letters.  They not only provide sage financial advice — talking about derivatives as “weapons of mass destruction” well before the financial crisis – but they promote the legend of Mr. Buffett. He dispenses economic advice, financial advice and talks about the fate of not just of Berkshire Hathaway but America.  These are letters for the entire population, not just lessons for corporate America. Professor Cunningham has done quite a service by curating these letters and updating this volume.

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