Be sceptical, says Buffett, but 40,000 followers pay homage
Over the weekend, Warren Buffett hosted his insurance-to-ice cream conglomerate's annual meeting. Known as Woodstock for capitalists, the two-day jamboree has all the elements of a religious festival, with devotees basking in the reflected glow of their guru.
There's something stomach-churning and perhaps, in an investing sense, costly, about such veneration. This year, up to 40,000 followers attended the jamboree, visiting the sites of religious significance: a barbecue at Nebraska Furniture Mart; an exclusive shareholder shopping day at Borsheim Jewellers; a NetJets tour.
True believers can get even closer to god in the most intimate way by wearing the exclusive $5 Fruit of the Loom "Berky Boxers" featuring a motif of Buffett and Munger themselves.
But for an overwhelmingly reverential experience, nothing beats a slab of meat, chips and a root beer at Gorat's, Buffett's favourite steakhouse and the closest value investors get to an ashram.
I've never been to Omaha and have no plans to do so (although I have attended Munger's Wesco meeting). I hate crowds and there's nothing that investors get from the meeting not available online, except the experience of being there, which, of course, is the point.
Omaha is to investors what Lourdes is to Catholics. The very act of attending inducts you into the cult and confirms the extent of your belief, whether you like it or not.
Which is of course where the danger lies. In adopting a guru, one abdicates a sense of autonomy and self-reliance, skills crucial to investing success.
This isn't Buffett's fault. In fact, he goes out of his way to prove his fallibility. This year Buffett called on hedge fund manager Douglas Kass, who has been shorting Berkshire stock, to make the case against the company. By all accounts he failed, thus reaffirming the mythology of Buffett's munificence in the eyes of his followers.
The cult of Buffett is so entrenched that its most vociferous critic is Buffett himself, who regularly administers large doses of self-reproach for poor decisions.
Such hero worship is dangerous, dispensing as it does with the one thing that all successful investors need: scepticism.
The idea that there is one true way, one path to riches, sign-posted by a pair of octogenarians with a fondness for peanut brittle, is one that Buffett and Munger themselves would be first to reject.
To be a successful investor you need to think independently and correctly, a phrase Buffett regularly trots out. That means the last thing you should do is join the cult of Buffett.
John Addis is a director at Intelligent Investor.
Frequently Asked Questions about this Article…
The Berkshire Hathaway annual meeting in Omaha—nicknamed 'Woodstock for capitalists'—is a two-day event that draws up to about 40,000 followers. Investors attend for Q&A with Warren Buffett and Charlie Munger, shareholder activities (like a Nebraska Furniture Mart barbecue, an exclusive shopping day at Borsheim Jewellers and NetJets tours) and the communal experience, although most meeting content is available online.
No — the article warns against hero worship. While Buffett offers valuable lessons, blind devotion can erode autonomy and sceptical thinking that successful investors need. Buffett himself promotes independent thought and even highlights his own mistakes to discourage unquestioning faith.
Buffett invited hedge fund manager Douglas Kass—who has been shorting Berkshire—to present the case against the company. Kass failed to sway the audience, but the gesture shows Buffett's willingness to expose his company to criticism. That openness and Buffett’s habit of admitting poor decisions underline the importance of scepticism and realistic expectations for investors.
According to the article, nearly all of the meeting’s informational content is available online; the main difference is the in-person experience and rituals of attending. For most everyday investors, the learning and insights can be obtained without making the trip.
Shareholder activities and perks mentioned include a barbecue at Nebraska Furniture Mart, a shareholder shopping day at Borsheim Jewellers, NetJets tours, and branded items such as $5 Fruit of the Loom 'Berky Boxers' featuring Buffett and Munger motifs.
Douglas Kass is a hedge fund manager known for shorting Berkshire Hathaway stock. His invitation to the meeting to make the case against Berkshire was notable because Buffett invited a vocal critic to speak—illustrating Buffett’s willingness to confront opposing views publicly.
The article argues that intense veneration of Buffett can lead investors to abdicate independent judgement and self-reliance, replacing necessary scepticism with faith in a single 'true way.' That loss of critical thinking can be costly when making investment choices.
Take Buffett’s core advice—think independently and correctly—while maintaining healthy scepticism. Learn from his openness about mistakes and his emphasis on critical thinking, but make investment decisions based on your own research, goals and risk tolerance rather than following celebrity status.
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