"I made my first investment at the age of 11.
I had wasted my life up until then"
- Warren Buffett
You've heard of him somewhere. Seen him in a newspaper, saw a video about him, or heard a conversation about him. Any market fanatic will tell you that Warren Buffet is one of the greatest investors of all time. He's like the Michael Jackson of investing. But he wasn't born with such incredible wisdom.
Warren Edward Buffett was born on 30th August 1930, to a middle-class family in Ohama, Nebraska. Warren showed great interest in business and money early on in his life. He was a math prodigy and could add complicated sums mentally. His initial investment was 3 shares of Cities Service which he made the age of 11. At the age of 13, Warren worked as a newspaper boy and sold his horse racing tip sheets which resulted in him earning $5000 by the age of 17. Warren wasn't obliged to go to college, but his father insisted on it. He attended the Wharton Business School of the University of Pennsylvania, but Warren didn't enjoy it because he claimed he knew more than the professors. He studied for a master’s degree at Columbia University, where he met his mentor, Benjamin Graham. He worked with Graham as an analyst. Warren was inspired by his books, ‘The Intelligent Investor’ and ‘Security Analysis’. After graduating, he married Susie Thomson and lived in a shabby home with a rent cost of 65$ a month. The house was infested with rats, and to save money, he converted an old cupboard into a
bed for his newborn child. His parents advised him against working on Wall Street but he was determined, and he offered to do the Graham partnership for free. But Benjamin Graham was reserving those jobs for unemployed jews after the World War. Warren was dejected, but he moved on. In 1956, he founded his own company, named Buffet.Inc in his hometown, Omaha. Using the knowledge he had gained from Benjamin Graham, he identified undervalued firms and bought them. He became a millionaire, and one of his successes was a textile company named Berkshire Hathaway. He eventually gained control over the company. Berkshire Hathway continued to invest and noted amazing successes in companies like Coca Cola, Exxon Company, and The Washington Post. Warren adapted to changes in the market and even controlled Citigroup Global in the early 21st Century. A net worth of 82.4 billion has made him one of the richest people in the world.
What can we learn from him?
Warren Buffet has donated a colossal amount of money to charity and plans on giving 99% of his wealth to various organizations but the bulk of which will go to The Bill and Melinda Gates Foundation. He has already donated over 30 billion dollars. Apart from having an incredible mind and pure heart, he has a strong liking for reading and said that his main source of wealth comes from it. Countless biographies have been written about him, and he has strongly urged the public to read books. Warren has penned his thoughts in the form of quotes, and every single one of them gives priceless wisdom.
He is a billionaire, an inspiration, a prodigy, a philanthropist, and a reader.
Berkshire Hathaway owns shares of many famous brands and companies including-
Apple- 5.9% Stake
Kraft-Heinz- 26.6% Stake
General Motors Company- 5.2%
Coca Cola- 9.9% Stake
American Express- 18.8% stake
Bank Of America- 11.9% stake
Visa- 0.5% stake
“Someone is sitting under the shade today because someone planted a tree long ago”
Happy 90th Birthday!
Written by Vivaan Dharamshi
Edited by Nirvaan Zaveri
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