Warren Buffett Biography – The Intelligent Investor

Warren Buffett Biography

Warren Buffet Biography

Warren Buffett is an American business magnate, investor, and philanthropist. He is the chairman, CEO and largest shareholder of Berkshire Hathaway (American multinational conglomerate holding company headquartered in Omaha, Nebraska, USA). He is one of the greatest investors of all time. He is also known as “Wizard Of Omaha” for his long-term investments and is one of the most respected businessmen in the world. He was ranked as the World’s Wealthiest Person in 2008.

Warren’s friends said that he was a prodigy in Mathematics and was able to add large amounts of money in his head at an early age.

Warren Buffett Biography – The Intelligent Investor

Early Life

Buffett was born in 1930 in Omaha, the same region where he lives currently. He with his family moved to Washington, D.C. He completed his elementary school and loved Math at especially calculating figures and wanted to become a future stockbroker.
As a child, he displayed immense interest in Saving and Investing Money. He sold chewing gum, Coca-Cola or weekly magazines door to door. He bought Coca Cola from his grandfather’s grocery store and sold them for 5 cents each at a profit of 20%.
Warren is said to love numbers. When he was a kid he memorised the shares of all big and small companies from the book given to him by his father.

“Price is what you pay, value is what you get.” – Warren Buffet at an International Conference

First Entrepreneurial Business – The Real Self-Made Man

Warren Buffett Biography

At 11 years old, he made his first investment. That is he bought 3 shares of Cities Service at 38$ per share. But the stock quickly dropped to 27$. He was sad but patiently waited for a long time until the stocks had reached 40$ each share. Buffett sold these shares at a small profit but was feeling guilty as if he had waited a bit more the stocks had reached to 200$ each share! He said that he had learned his first lesson in stocks and investing. That is patience in investing is an important key.

“You don’t have to cheat to make money.”

As he lived in Omaha, he already knew what it is like to be poor as he had seen the early days of The Great Depression. He said to his father that he wants to be rich, very rich.

In 1945, Buffett (aged 15) and his friend spent 25$ on a pinball machine and placed it in a local barber’s shop. Within few months, they owned several alike machines placed in different barber shops. Then he sold this business to a local company for $1,200 (INR 72000).

“The basic ideas of investing are to look at stocks as business, use the market’s fluctuations to your advantage, and seek a margin of safety. That’s what Ben Graham taught us. A hundred years from now they will still be the cornerstones of investing.”

Higher Education

Buffett attended the University of Pennsylvania at the age of 16 to have a deeper knowledge of business and accounting. He stayed there for approximately 24 months and then moved to University of Nebraska to finish up his college at the age of 20.

He had saved around $10,000 (INR 6,00,000) from his childhood businesses. Buffett later attended Columbia University to pursue further education.

He was now completely ready to make his business rock with excellent knowledge of stocks, bonds, investments, etc.

He says at the time of starting his business, he bought undervalued stocks of good companies that an excellent bang for buck profit annually.

Quotations

Warren Buffett has coined many priceless quotations. Some of them are:

Warren Buffett Biography

Recent Years – The Intelligent Investor

Warren Buffett is now wealthier than ever because of the rock solid performance of his diversified investment firm Berkshire Hathaway. Hathaway’s Class A stock surpassed the price of $215,000 per share( INR 1,45,00,000 ) in November 2016.

His ranks according to the Forbes Magazine:

Warren Buffett Forbes Ranking

Global Billionaire Rank3
United States Billionaire Rank2
Powerful People Rank12

His firm Berkshire Hathaway’s 2015 Annual Letter shows off extreme revenues and rock solid foundation:

Berkshire Hathaway Investments

SharesCompany% of Company OwnedCost ($ Million)Market ($ Million)
Total Common Stocks Carried at Market58,612112,338
151,610,700American Express Company15.6 1,287 10,545
46,577,138AT&T0.812831,603
7,463,157Charter Communications, Inc6.61,2021,367
400,000,000 The Coca-Cola Company9.31,29917,184
18,513,482DaVita HealthCare Partners Inc8.88431,291
22,164,450 Deere & Company7.01,7731,690
11,390,582 The Goldman Sachs Group, Inc2.76542,053
81,033,450International Business Machines Corp. .8.413,79111,152
24,669,778Moody’s Corporation12.62482,475
55,384,926 Phillips 6610.54,3574,530
52,477,678 The Procter & Gamble Company1.93364,683
22,169,930Sanof1.71,7011,896
101,859,335U.S. Bancorp5.83,2394,346
63,507,544Wal-Mart Stores, Inc2.03,5933,893
500,000,000Wells Fargo & Company9.812,73027,180
Others10,27616,450
Huge Investments made by Berkshire Hathaway

Credits

Warren Buffet Biography

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