The Unreasonable Man 193The irony is that Buffett’s success lies partly in the failure of others.
“It has been helpful to me,” he explains, “to have tens of thousands (stu-
dents) turned out of business schools taught that it didn’t do any good to
think.”^6 I do not mean to imply that Buffett is average, far from it. He
is unquestionably brilliant. But the gap between Buffett and other pro-
fessional investors is widened by their own willingness to play a loser’s
game that Buffett chooses not to play. Readers of this book have the
same choice.
Whether you are f inancially able to purchase 10 percent of a com-
pany or merely one hundred shares, the Warren Buffett Way can help you
achieve profitable investment returns. But this approach will help only
those investors who are willing to help themselves. To be successful, you
must be willing to do some thinking on your own. If you need constant
aff irmation, particularly from the stock market, that your investment de-
cisions are correct, you will diminish your benef its. But if you can think
for yourself, apply relatively simple methods, and have the courage of
your convictions, you will greatly increase your chances for prof it.
Whenever people try something new, there is initial apprehension.
Adopting a new and different investment strategy will naturally evoke
some uneasiness. In the Warren Buffett Way, the f irst step is the most
challenging. If you can master this f irst step, the rest of the way is easy.
Step One: Turn off the Stock Market
Remember that the stock market is manic-depressive. Sometimes it is
wildly excited about future prospects, and at other times it is unreason-
ably depressed. Of course, this behavior creates opportunities, particu-
larly when shares of outstanding businesses are available at irrationally
low prices. But just as you would not take direction from an advisor who
exhibited manic-depressive tendencies, neither should you allow the
market to dictate your actions.
The stock market is not a preceptor; it exists merely to assist you
with the mechanics of buying or selling shares of stock. If you believe
that the stock market is smarter than you are, give it your money by in-
vesting in index funds. But if you have done your homework and un-
derstand your business and are conf ident that you know more about
your business than the stock market does, turn off the market.
Buffett does not have a stock quote machine in his off ice and he
seems to get by just f ine without it. If you plan on owning shares in an