Who’s Warren Buffett?

“Who’s Warren Buffett I asked?”

That’s what George Goodman (“Adam Smith”) said to Benjamin Graham when he was asked to work on a new edition of The Intelligent Investor.

George Goodman introduced Warren Buffett to the world in this video below. I searched for it without luck a few years ago when I read this book, so I was very excited when I saw Michael Mauboussin unearthed it.

If you’re not familiar with Goodman’s work, I urge you to read The Money Game pronto. Below is a brilliant excerpt, from one of the best investment books ever written:

A stock is for all practical purposes, a piece of paper that sits in a bank vault. Most likely you will never see it. It may or may not have an Intrinsic Value; what it is worth on any given day depends on the confluence of buyers and sellers that day. The most important thing to realize is simplistic: The stock doesn’t know you own it. All those marvelous things, or those terrible things, that you feel about a stock, or a list of stocks, or an amount of money represented by a list of stocks, all of these things are unreciprocated by the stock or the group of stocks. You can be in love if you want to, but that piece of paper doesn’t love you, and unreciprocated love can turn into masochism, narcissism, or, even worse, market losses and unreciprocated hate.