One of the most formative books Warren Buffett read as a young investor was The Intelligent Investor by Benjamin Graham. Buffett has praised it as “by far the best book on investing ever written.”
A key concept from the book is the character of “Mr. Market,” Graham’s metaphor for the stock market’s often irrational behavior. Sometimes, Mr. Market offers fair prices for stocks—but other times, his emotions swing wildly, quoting values that are “a little short of silly.”
Buffett echoed this idea at Berkshire Hathaway’s 2012 Annual Meeting, saying, “It’s a marvelous game. The rules are stacked in your favor, if you don’t turn those rules upside down and start behaving like the drunken psychotic instead of the guy that’s there to take advantage of it.”
For Buffett, the lesson is clear: success in investing often comes down to staying rational while others are ruled by fear or greed.
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© 2025 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.