The Super Investors of Graham and Doddsville
This article was written by Warren Buffett based on a speech given May 17, 1984 to the Columbia Business School. Buffett was 54 years old at the time. The great bull market run of 1982-1999 had only just started and many were feeling the effects of the “stagnation” in the prices of securities. The symptoms du jour were much the same as today, (2010). Academics were suggesting that there was nothing to be gained from professional advice, that investment performance reverted to the mean, and that risk is best measured using mathematical formulas such as beta.
When prices stay flat for an extended period, we can expect many people will become disgruntled investors. Buffett once remarked that it is during times like these that businesses are returned to their rightful owners. Another symptom of the times is the echo of deprecating remarks about the ability to outperform the stock market and how the law of averages and luck are the more influential factors in determining outcomes. In this article, Buffett describes the remarkable difference allowing “Super Investors” to outperform ordinary investors.
warren buffett | the superinvestors of graham and doddsville