ASSINGMENT ON BERKSHIRE HATHAWAY’S

FOUNDER AND CEO WARREN BUFFET.

Submitted in Partial Fulfillment for the Reward of the degree of

MASTERS OF BUSINESS ADMINISTRATION [2019-2021]

SUBMITTED TO- SUBMITTED BY-

DR.RAMINDER SIRA DEVESH BHATT

(19421021)

M.B.A– 1(A)

SCHOOL OF MANAGEMENT STUDIES.

Born- Warren Edward Buffett

August 30, 1930 (age 88)

Omaha, Nebraska, U.S.

Residence- Omaha, Nebraska .

Nationality- American.

Alma mater-University of Pennsylvania

College of Nebraska–Lincoln

Columbia University.

Occupation- Investor, business +head, speaker and donor

A long time active 1951–present

Known for Leadership of Berkshire Hathaway with Charlie Munger.

Net worth-US$82 billion [1] (July 2019)

Spouse(s)-Susan Thompson

(m. 1952; passed on 2004)

Astrid Menks - (m. 2006)

Children-Susan Alice Buffett

Howard Graham Buffett

Dwindle Buffett

Parent(s)-Howard Buffett

Leila Stahl Buffett

Relatives-Howard Warren Buffett (grandson)

Roberta Buffett (sister)

Doris Buffett (sister)

Website-www.berkshirehathaway.com

www.letters.foundation

Early life and Family :-

Buffett was conceived in 1930 in Omaha, Nebraska, the second of three kids and
the main child of Leila (née Stahl) and Congressman Howard Buffett. Buffett
started his training at Rose Hill Elementary School. In 1942, his dad was chosen
for the first of four terms in the United States Congress, and subsequent to
moving with his family to Washington, D.C, Warren completed primary school,
went to Alice Deal Junior High School and moved on from Woodrow Wilson High
School in 1947, where his senior yearbook picture peruses: "likes math; a future
stockbroker." After completing secondary school and discovering accomplishment
with his side enterprising and speculation adventures, Buffett needed to skip
school to go straightforwardly into business, yet was overruled by his father.

Buffett showed an enthusiasm for business and contributing at a youthful age. He

was propelled by a book he obtained from the Omaha open library at the age of
seven, One Thousand Ways to Make $1000.Much of Buffett's initial youth years
were charged with enterprising endeavors. In one of his first business adventures
Buffett sold biting gum, Coca-Cola jugs, and week after week magazines entryway
to entryway. He worked in his granddad's supermarket. While still in secondary
school, he made cash conveying papers, selling golf balls and stamps, and
itemizing vehicles, among different methods. On his first personal expense form
in 1944, Buffett took a $35 finding for the utilization of his bike and watch on his
paper route. In 1945, as a secondary school sophomore, Buffett and a companion
burned through $25 to buy an utilized pinball machine, which they set in the
neighborhood hairstyling salon. Inside months, they claimed a few machines in
three diverse hair salons crosswise over Omaha. The business was sold later in the
year for $1,200 to a war veteran. Financial specialist Benjamin Graham was
persuasive on youthful Buffett. Buffett's enthusiasm for the financial exchange
and contributing dated to student days he spent in the clients' parlor of a
territorial stock financier close to his dad's very own business office. On an outing
to New York City at age ten, he tried to visit the New York Stock Exchange. At 11,
he purchased three portions of Cities Service Preferred for himself, and three for
his charitable sister Doris Buffett. At the age of 15, Warren made more than $175
month to month conveying Washington Post papers. In secondary school, he put
resources into a business possessed by his dad and purchased a 40-section of land
homestead worked by a sharecropper. He purchased the land when he was 14
years of age with $1,200 of his reserve funds. When he completed school, Buffett
had gathered $9,800 in reserve funds (about $103,000 today). In 1947, Buffett
entered the Wharton School of the University of Pe2nnsy2lvania. He could have
favored to cognizance on his business ventures; however, he enrolled due to
strain from his father.[24] Warren studied there for 2 years and joined the Alpha
Sigma Phi fraternity.[29] He then transferred to the University of Nebraska where
at 19, he graduated with a Bachelor of Science in Business Administration. After
being rejected through Harvard Business School, Buffett enrolled at Columbia
Business School of Columbia University upon gaining knowledge of that Benjamin
Graham taught there. He earned a Master of Science in Economics from Columbia
in 1951. After graduating, Buffett attended the New York Institute of Finance .The
fundamental thoughts of investing are to examine shares as business, use the
marketplace's fluctuations to your advantage, and seek a margin of safety. That's
what Ben Graham taught us. A hundred years from now they'll nonetheless be
the cornerstones of investing. — Warren Buffett.
Career:-
 He worked at his father’s company, Buffett-Falk & Co. from 1951 to 1954 as
an investment salesman. By the age of 20, he had already amassed savings
worth almost $10,000 in 1950 — this showed what an astute investor he
was.
 He was appointed at a starting salary of $12,000 a year at Benjamin
Graham’s partnership in 1954. His boss was a difficult man to work with
and expected strict adherence to conventional rules of investing which
Buffett’s young mind questioned.
 Benjamin Graham retired and closed his partnership in 1956. By this time
Buffett had a large amount of personal savings with which he opened
Buffett Partnership Ltd., an investment partnership in Omaha.
 He started operating several other partnerships and by the end of the
decade he had seven partnerships operating. He became a millionaire in
1962 as a result of his earnings from all his partnerships.
 He merged all the partnerships into one and invested in a textile
manufacturing firm called Berkshire Hathaway. He began purchasing the
shares of Berkshire Hathaway aggressively during the early 1960s and
eventually took over the control of the company.
 During the late 1960s he shifted the business from textile into the insurance
sector and by 1985 the last of the textile mills under Berkshire Hathaway
had been sold off.
 Berkshire Hathaway purchased a 12% stake in Salomon Inc. in 1987 and
became its largest shareholder; Buffett became its director. Following a
scandal in 1990, John Gutfreund the CEO of Salomon Brothers left the
company in 1991. Buffett took over as chairman till the crisis passed.
 Buffett began buying stocks in Coca-Cola Company in 1988 eventually
purchasing up to 7% of the company for $1.02 billion. It would prove to be
one of Berkshire’s best ever investments.
 He entered in $11 billion worth of forward contracts to deliver U.S. dollars
against other currencies in 2002. He had earned over $2 billion by April
2006.
 In June 2006, Buffett made an announcement that he would be gradually
giving away 85% of his Berkshire holdings to five foundations, the largest
contribution of which would go to the Bill and Melinda Gates Foundation.
  He became the richest person in the world in 2008 with a total net worth
estimated at $62 billion by Forbes, overtaking Bill Gates who had been the
No.1 on Forbes list for the past 13 years. The very next year, Gates regained
the first position and Buffett moved to second place.

Awards & Achievements:-

 He was presented with the Presidential Medal of Freedom by President
Barack Obama in 2011.
 He is the chairman and CEO of Berkshire Hathaway and ranks among the
world’s wealthiest people. Considered to be the most successful investor of
the 20th century, he is also the biggest philanthropists of our times and had
pledged to donate most of his fortunes to social causes.
 World’s most Influential Global Thinker in Foreign Policy’s 2010 report.

Personal Life & Legacy:-

 He married Susan Thompson in 1952. The couple had three children. Susan
left him in 1977 to pursue her own career and started living separately.
They never divorced and remained legally married till Susan’s death in
2004.
 He married his longtime partner, Astrid Menks in 2006; the couple had
known each other from the time his first wife left him.
 He was diagnosed with prostate cancer in April 2012 and has successfully
completed his treatment.
 He believes in giving back to the society and has pledged to give away the
major portion of his wealth to charity, with 83% of it going to the Bill &
Melinda Gates Foundation.
Warren Buffet’s Leadership Style:-

Warren Buffett is one of the world’s richest men, with assets totalling up to
US$86.6 billion as of 2019. His main source of wealth is his company Berkshire
Hathaway, a conglomerate holding company headquartered in Omaha,
Nebraska. His philosophy of value investing and prudence has influenced many
investors worldwide.

If you think investing and leadership do not have anything in common, then
think again. Warren Buffet, known worldwide as the ‘most successful investor
of the 20th century,’ knows a thing or two about how to become a great leader
in the business world. He is also one of the richest people in the world, and
pledged to donate 99% of his wealth to charity. From selling newspapers at the
age of 11 to where he is now at 86-years-old, he’s living proof that sometimes
old-school techniques work.
Warren Buffet’s Leadership Style: 6 Leadership Traits of
the Deca-Billionaire CEO of Berkshire Hathaway:-

1. Stick to Fundamental Values:-

Buffett always believed in the fundamental values of a business. While the
financial world is often driven by fear and greed, Buffett stands firm in his
investing values. He believes that investing in stocks is like investing directly in
the business. If the business can be profitable in the long run, so will its stock.

In an age of so many new management theories and techniques, we should

remember the fundamental leadership principles of vision, character and
discipline. While new theories and tools can come and go, principles that govern
leadership will forever remain the same.
2. Live simply:-
Although he is one of the richest men in the world, Buffett lives simply. He only
owns a single telephone in his house, and cycles to and from work.

Many leaders nowadays are distracted by the material possessions they can
have as leaders, so much so that their motivation can become clouded. Is this
leader in it because he believes in the cause? Or does he merely wants to stand
out from others; to be recognized and enjoy the status of being a leader?

Buffett demonstrates humility through his frugal spending. Instead of becoming

complacent or distracted by riches, Buffett is very clear that his objective is to
accumulate wealth; not squander it.
3. Give back:-
Buffett has committed to give away 99% of his wealth to charity through the
Gates Foundation. If his focus on wealth accumulation is admirable, then giving
the majority of it away is an even greater feat.

The leaders who leave an impact in the world view material wealth not as an
end in itself, but a means to affect positive change in the community. Even as
you strive for success for your team or organization, consider how you can give
back and contribute to the world, and make a difference in the lives of others.
4. Communicate openly and effectively:-

Buffett is a firm believer that you should always present non-technical, clear
thoughts that gets the message across to your peers. He also believes that “If
you can’t communicate and talk to other people and get across your ideas,
you’re giving up your potential.” Buffett’s intimate knowledge of the business
world along with his effective communication skills warrants him his success in
the industry.
Terrified of public speaking? You’re not alone. Even successful personalities had
to break down those boundaries to be able to achieve success. Buffett had to
enroll in a communication course to overcome his fear of speaking in public.
5. Pick your allies wisely:-

If you believe in the famous idiom ‘Birds of the same feather, flock together,’
then you’re not yet ready to be a mentor just yet. Buffett suggests that you
should surround yourself with better people that will inspire you to improve
yourself. He said: “It’s better to hang out with people better than you. Pick out
associates whose behavior is better than yours and you’ll drift in that direction.”

Zurich-based author and investor Guy Spier paid $650,000 just to have lunch
with Buffett. In his article on Marketwatch, he documented how he was utterly
inspired by the extraordinary entrepreneur. Of course, the money spent for the
lunch went to charity, but the lesson learnt with live on forever.
6. Be prepared for any risks:-
If there’s anything that the business world has taught Buffett, it’s the art of
facing risk. He believes that “risk comes from not knowing what you’re doing.”
There are two sides of the coin here – either you become a risk taker or you
learn how to minimize your risks. Of course, the latter would be the best
approach, but it does not offer instant gratification.

Nowadays, there are tools that can help minimize risk and assist investors in
making the most educated moves, such as a market scanner. A market scanner
is a research tool for investors gives indicators and timeframes on when to buy
or sell. In terms of leadership, there’s no technical tool as such. However, there
are basic principles to abide by in hedging losses and by learning from your
mistakes. Buffett said: “I make plenty of mistakes and I’ll make plenty more
mistakes, too. That’s part of the game. You’ve just got to make sure that the
right things overcome the wrong ones.”
These 6 important leadership traits embody Warren Buffett’s decades of
experience, which has included both success and failure. To follow Buffet’s
example, it’s worth considering these tidbits as a guide to good practice. If it
worked for Buffett, we hope it works for you, too.