Success Story Of Warren Buffett, an American entrepreneur, investor, and philanthropist. It is considered by some as one of the most successful investors in the world and in March 2017 is the second richest in the United States and the fourth richest in the world, with a total of $ 73.3 billion.
Born in Omaha, Warren Buffett has developed an interest in the business and has invested in his youth to enter the Wharton School of the University of Pennsylvania in 1947 before moving to the University of Nebraska-Lincoln at the age of 19. Buffett continues to enroll and graduated from Columbia University has learned and ultimately shaped his investment philosophy around a concept devised by Benjamin Graham-value investment.
He studied at the New York Institute of Finance to specialize in his economic background and soon began various business associations, including one with Graham. After meeting with Charlie Munger, Buffett created the Buffett Association. His company has finally acquired a textile manufacturing company called Berkshire Hathaway and has taken its name to create a diversified portfolio company.
Warren Buffett is the chairman and largest shareholder of Berkshire Hathaway since the 1970s and his business activities that called “Omaha”, “Oracle” or “Sage” magicians by the international media. He is known for his commitment to the value of the investment and his personality, despite his immense wealth.
Warren Buffett is a noted philanthropist, having committed 99 percent of his fortune to philanthropic causes, especially through the Bill and Melinda Gates Foundation. In 2009, Bill Gates and Mark Zuckerberg, Warren founded The Giving Commitment, why billionaires pledged to give at least half of their fortune.
He is also active in contributing to political causes, supported Democratic candidate Hillary Clinton in the United States presidential elections of 2016; He publicly opposed the policies, actions, and declarations of the President of the United States, Donald Trump.
Success Story of Warren Buffett: Life and education
Buffett was born in 1930 in Omaha, Nebraska. He was the second of three children and the only son of Leila (Maiden Stahl) and commissioner Howard Buffett, Buffett began his education at Rose Hill Elementary. In 1942, his father was elected to the first of four terms in the United States Congress and after moving his family to Washington, DC, Warren finished primary school, attended Alice Junior High School and graduated from Woodrow Wilson High School in 1947 recite his old part of the year: “love math, a future broker.”
Success Story Of Warren Buffett- Business Magnate
After finishing high school and success Story Of Warren Buffett, he found success with his business and investments, Buffett wanted to skip college to go directly to the company but was suspended from his father.
Buffett has shown interest in business and investment at an early age. It was inspired by a book he borrowed from the Omaha Public Library at the age of seven, a thousand ways to make $ 1,000. Many of Buffett’s early years were animated by business firms. One of his first business, Buffett sells chewing gum, Coca-Cola bottles or weekly magazine magazines door.
He worked at his grandfather’s shop. Although still in high school, he made money to transport newspapers, sell golf balls and stamps, and cars detailing, among other things. In his first concept of income in 1944, Buffett $ 35 deducted for the use of the bicycle and looked at his paper route. In 1945, as a high school student, Buffett and a friend spent $ 25 when buying a used pinball machine, which is placed in the local barber. In a matter of months, they had several cars in three hairdressers in Omaha. The business was sold at the end of the year for $ 1,200 to a war veteran.
Buffett’s interest in the stock market and investment dated in school days spent in the client area of a regional brokerage firm in his father’s brokerage office. On a trip to New York City at the age of ten, he made a point to visit the New York Stock Exchange. At 11, he bought three Cities Service shares preferred for him and three for his sister Doris Buffett (founder of the Lady Sun Foundation).
At age 15, Warren has made more than $ 175 a month to deliver The Washington Post. In high school, he invested in a company owned by his father and bought a 40-acre farm worked by the Farmers Tenant. He bought the land when he was 14 with $ 1,200 of his savings. By the time he finished college, Buffett had accumulated $ 9,800 in savings (currently around $ 99,000).
In 1947, Buffett entered the Wharton School of the University of Pennsylvania. He prefers to focus on his business; However, he enrolled due to pressure from his father. Warren studied there for two years and joined the Sigma Phi Alpha Fraternity. He then moved to the University of Nebraska-Lincoln, where, at age 19, he graduated with a Bachelor of Science in Business Administration.
After being rejected by the Harvard Business School, Buffett enrolled in the Columbia Business School, Columbia University after learning that Benjamin Graham taught there. He holds a Master of Science degree in Economics from Columbia in 1951. After graduation, Buffett attended the New York Institute of Finance.
Basic investment ideas are looking at stocks as business, use the market fluctuations in your favor, and look for a margin of safety. This is what Ben Graham taught us. Within a hundred years from now, they will continue to be investment pillars.
– Warren Buffett
Success Story Of Warren Buffett: Net Worth & Current Influence
Warren Buffett has a net worth of over $ 65 billion (as of March 2016). By far, most of its net worth is its shares of Berkshire Hathaway, a company that began to acquire in 1962. Over the past 50 years, Berkshire Hathaway has gone from being a textile manufacturer to an international investment conglomerate In sectors such as insurance, food and beverages, banks and private aviation.
Warren’s main influence was Benjamin Graham. Benjamin is well known in the investment cycle as the father of value investing. Warren has dreamed of working for the collaboration of Graham and Warren in 1954 had his chance when a job at Graham-Newman was offered. For two years, Warren has learned to be more disciplined of investors and successful under the watchful eye of Benjamin. When the Graham-Newman association ended in 1956, Warren used what he had learned to create his association in Omaha. These partners could one day become the first shareholders of Berkshire Hathaway.
Another great influence on Warren’s life is his long-term partner Charlie Munger. Charlie is a former lawyer turned investor who started his association in the 70’s. Despite being in the shadow of Warren, Charlie is a major investment manager and has recorded a total annual return of almost 20% and manages his own fund investment.
Warren and Charlie first met in 1959 and have become good friends immediately. While Warren is the person who gave Charlie the idea of starting a mutual fund, Charlie was credited with helping Warren to see the bigger picture and influence him to diversify his investments away from the teachings of Benjamin Graham once Berkshire Hathaway Began to grow.
Success Story Of Warren Buffett: Investment Style
Success Story Of Warren Buffett ‘s investment philosophy is often “value investing,” so called because it looks like the underlying value of a company, rather than the price movements of its shares. Buffett believes that investors should choose only the actions they consider to save forever.
The value of the investment is a highly disciplined practice by Buffett. He has given many succinct but incisive rules to invest in his famous letters to investing shareholders, publications and in the popular press.
Some of his most notable government can be summarized as “not losing money” and “it is better to get a great company at a fair price than a fair company at a very good price.” Of course, Buffett has broken his own rules on occasion, which proves that his first basic rule, most of it is to look at investing pragmatically rather than programmatically. (See also: The rules that Warren Buffett lives.)
In a sense, Buffett breaks with his value investing philosophy looking not only at dividend income but also at share price growth.
Rigorously, a value investor does not care about the stock price or the market value of a company as the value of a company’s property is to return the benefits it offers to its owners, shareholders. But Benjamin Graham, the godfather of investment value, acknowledged that profits can be made when an investor buys an undervalued business for any reason on the stock market, assuming that the market will finally find the discrepancy and the price of Actions arise.
Success Story Of Warren Buffett bought companies (Berkshire Hathaway is the most obvious example) that were underperforming and led them to profitability. Offers like this have convinced some people that Berkshire Hathaway looks more like a private equity firm than simply holding on and Buffett and his firm partners are not really value investors, but very cautious speculators.
Pragmatism and caution are key components of the Buffett brand and Berkshire Hathaway Success Story Of Warren Buffett, He is not an investor in the strict sense of value, his instinct for a good deal and the rules of confrontation that he has placed himself not only made Berkshire Hathaway outperformed other investment firms but also protected from the extravasate loss.