Tag Archives: dot-com

Painting with Warren Buffett

The following is one of my favorite excerpts from Susan Cain’s marvelous Quiet, which I cannot recommend enough (whether you are an introvert or extrovert).  Warren Buffett, the famously introverted and successful investor, was at an investing conference just prior to the burst of the 2000 dot-com bubble.  Present at the party was lots of “new money,” investors and venture capitalists who had recently become very wealthy.

“Buffett was decidedly not a part of this group.  He was an old-school investor who didn’t get caught up in speculative frenzy around companies with unclear earnings prospects.  Some dismissed him as a relic of the past.  But Buffett was still powerful enough to give the keynote address on the final day of the conference.”

Buffett saw that the bubble was about to burst, and told the happy crowd exactly what he thought.  They were not pleased with his remarks, and dismissed him as hopelessly backwards.  Next year, though, when the bubble did burst, Buffett was proven right:

“Buffett takes pride not only in his track record, but also in following his own ‘inner scorecard.’  He divides the world into people who focus on their own instincts and those who follow the herd.  ‘I feel like I’m on my back,’ says Buffett about his life as an investor, ‘and there’s the Sistine Chapel, and I’m painting away.  I like it when people say, Gee, that’s a pretty good-looking painting. But it’s my painting, and when somebody says, Why don’t you use more red instead of blue? Good-bye. It’s my painting.  And I don’t care what they sell it for.  The painting itself will never be finished.  That’s one of the great things about it.'” (177)