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Warren Edward Buffett is an American business magnate, investor, and philanthropist. He is widely regarded as one of the most successful investors in the world. Often introduced as "legendary investor, Warren Buffett", he is the primary shareholder, chairman and CEO of Berkshire Hathaway.]He is consistently ranked among the world's wealthiest people. He was ranked as the world's wealthiest person in 2008 and is the third wealthiest person in the world as of 2011.
In 1947, a seventeen year old Warren Buffett graduated from High School. It was never his intention to go to college; he had already made $5,000 delivering newspapers (this is equal to $42,610.81 in 2000). His father had other plans, and urged his son to attend the Wharton Business School at the University of Pennsylvania. Buffett stayed two years, complaining that he knew more than his professors. When Howard was defeated in the 1948 Congressional race, Warren returned home to Omaha and transferred to the University of Nebraska-Lincoln. Working full-time, he managed to graduate in only three years.
At only six years old, Buffett purchased 6-packs of Coca Cola from his grandfather's grocery store for twenty five cents and resold each of the bottles for a nickel, pocketing a five cent profit. While other children his age were playing hopscotch and jacks, Warren was making money. Five years later, Buffett took his step into the world of high finance. At eleven years old, he purchased three shares of Cities Service Preferred at $38 per share for both himself and his older sister, Doris. Shortly after buying the stock, it fell to just over $27 per share. A frightened but resilient Warren held his shares until they rebounded to $40. He promptly sold them - a mistake he would soon come to regret. Cities Service shot up to $200. The experience taught him one of the basic lessons of investing: patience is a virtue. Warren Buffett approached graduate studies with the same resistance he displayed a few years earlier. He was finally persuaded to apply to Harvard Business School, which, in the worst admission decision in history, rejected him as "too young". Slighted, Warren applied to Columbia where famed investors Ben Graham and David Dodd taught - an experience that would forever change his life. Warren Buffett was employed from 1951–54 at Buffett-Falk & Co., Omaha as an investment salesman, from 1954–1956 at Graham-Newman Corp., New York as a securities analyst, from 1956–
The argument made sense to Buffett but he questioned whether the criteria were too stringent and caused the company to miss out on big winners that had more qualitative values. Taking a train to Washington. the company grew to six partnerships operating the entire year and Buffett was introduced to Charlie Munger. .800. This meant that buyers valued Sanborn stock at "minus $20" per share and were unwilling to pay more than 70 cents on the dollar for an investment portfolio with a map business thrown in for nothing. He offered to work for Graham for free. Peter Andrew Buffett. Howard Graham Buffett. In 1956. In 1952 Buffett married Susan Thompson at Dundee Presbyterian Church and the next year they had their first child.000 adjusted to 2008 dollars).. He purchased a five-bedroom stucco house in Omaha. Buffett's home in Omaha In 1957. Omaha as its Chairman.. At this time Buffett's personal savings were over $174. Buffett Fund. he knocked on the door of GEICO's headquarters until a janitor allowed him in. He was adamant that stocks provide a wide margin of safety after weighting the trade-off between their price and their intrinsic value.000 a year (approximately $97. where he still lives. In 1958 the Buffett's third child. and Buffett pooled their money with a mere $100 original investment of his own. Buffett revealed that Sanborn Map Company accounted for 35% of the partnership's assets. Glenoff.2 million inflation adjusted to 2009 dollars) and he started Buffett Partnership Ltd. Buffett discovered Graham was on the board of GEICO insurance.000 each in his partnership. Eventually eleven agreed.000 ($1. Ltd. both his father and Ben Graham urged him not to. Geico's Vice President.500. Buffett accepted a job at Benjamin Graham's partnership. In 1950. In 1954. an investment partnership in Omaha. There he met Lorimer Davidson.C. He explained that in 1958 Sanborn stock sold at only $45 per share when the value of the Sanborn investment portfolio was $65 per share. Mo-Buff and Underwood. for $31. Davidson would eventually become Buffett's life-long friend and a lasting influence and later recall that he found Buffett to be an "extraordinary man" after only fifteen minutes. Omaha as a general partner and from 1970 – Present at Berkshire Hathaway Inc. He asked one of his partners. However. The average age of his students was more than twice his own. In April 1952. D. Buffett had three partnerships operating the entire year. Buffett graduated from Columbia and wanted to work on Wall Street. on a Saturday. Susan Alice Buffett. During this time he also purchased a Sinclair Texaco gas station as a side investment. There he worked closely with Walter Schloss. was born. His starting salary was $12. Buffett had seven partnerships operating: Buffett Associates. he felt confident enough to teach an "Investment Principles" night class at the University of Nebraska-Omaha. CEO. Buffett returned to Omaha and worked as a stockbroker while taking a Dale Carnegie public speaking course. Buffett had made and saved $9. In 1961. this did not turn out to be a successful business venture. Dacee. to find ten other doctors willing to invest $10. but Graham refused. Graham was a tough man to work for. By 1960. at the age of 20. Emdee. a doctor. Benjamin Graham retired and closed his partnership. and the two discussed the insurance business for hours. In 1959. Buffett operated five partnerships the entire year.Using what he learned. however.1969 at Buffett Partnership. This earned him a spot on the board of Sanborn.That same year the Buffetts had their second child.
. In 1969.60 per share. Buffett's net worth reached $620 million. Both papers lost money. instigated by its rival. who controlled the company and its flagship newspaper. Among the assets paid out were shares of Berkshire Hathaway. In 1970. Buffett became a millionaire because of his partnerships. A rogue trader. a scandal involving John Gutfreund (former CEO of Salomon Brothers) surfaced. Berkshire began the year trading at $775 per share. Buffett became Chairman of Salomon until the crisis passed. However. It would turn out to be one of Berkshire's most lucrative investments. Berkshire Hathaway purchased a 12% stake in Salomon Inc. 1991.5 million. Capital Cities announced $3. to run the company. due to possible conflict of interest. In 1988. Paul Mozer. In 1966. In 1979. In 1987.000 belonged to Buffett. I intend to admit no additional partners to BPL. Buffett merged all partnerships into one partnership." In a second letter. Gutfreund left the company in August 1991. Ken Chace. when Buffett's partnerships began purchasing Berkshire aggressively. making it the largest shareholder and Buffett the director.02 billion.As a millionaire In 1962. which in January 1962 had an excess of $7. This did not include the value of fixed assets (factory and equipment). and his outside investment income. and became a member of its board of directors.000 per year. Buffett announced his first investment in a private business — Hochschild. he did not immediately suspend the rogue trader. was forced to sell off some stations due to FCC ownership rules. the SEC opened a formal investigation into Warren Buffett and Berkshire's acquisition of WESCO. Buffett liquidated the partnership and transferred their assets to his partners.025. the Buffalo Courier-Express. In 1979. Buffett became close friends with Katharine Graham. following his most successful year. In 1974. and ended at $1. he lived solely on his salary of $50. of which over $1. Berkshire paid out its first and only dividend of 10 cents. . known as Capital Cities/ABC (or CapCities/ABC). Buffett began buying stock in Coca-Cola Company. Buffett closed the partnership to new money. unless it appears that circumstances have changed (under some conditions added capital would improve results) or unless new partners can bring some asset to the partnership other than simply capital. Berkshire began to acquire stock in the Washington Post Company. Berkshire Hathaway chairman Warren Buffett helped finance the deal in return for a 25% stake in the combined company. In 1973. eventually purchasing up to 7% of the company for $1. on September 4. a privately owned Baltimore department store.310.86 per share while the company had working capital of $19 per share.178. In 1990. Buffett's partnerships began purchasing shares at $7. Berkshire indirectly purchased the Buffalo Evening News for $32. Berkshire Hathaway. until the Courier-Express folded in 1982. In 1977. Kohn and Co. When this was discovered and brought to the attention of Gutfreund.. No charges were brought. Buffett wrote in his letter: ". the two companies owned several radio stations in the same markets.The newly merged company. Buffett began writing his now-famous annual letters to shareholders. Buffett took control of Berkshire Hathaway at the board meeting and named a new president.5 billion purchase of ABC on March 18. he testified before Congress. Antitrust charges started. they paid $14. and one which it still holds.500. Also. was submitting bids in excess of what was allowed by the Treasury rules.. placing him on the Forbes 400 for the first time. as ABC was four times bigger than Capital Cities at the time. as chairman of Berkshire Hathaway. In 1965. Berkshire began to acquire stock in ABC. Buffett invested in and eventually took control of a textile manufacturing firm. 1985 surprised the media industry. In 1967.
to run his investment business. in a letter to shareholders. In 1998. his total gain on these contracts was over $2 billion. Late 2000s recession Buffett ran into criticism during the subprime crisis of 2007–2008. Buffett became the richest man in the world.73 billion mark-to-market losses. Buffett became involved with Maurice R. In 2010. 2005. with General Re providing reinsurance. Some of Buffett's Index put options (European exercise at expiry only) that he wrote (sold) are currently running around $6. with Buffett second. On March 15. I am.The operation included extra special incentives: he received an option to buy 3 . and undergoing 'corporate governance concessions'. AIG and the New York State Attorney General's office agreed to a settlement in which AIG would pay a fine of $1. Buffett has called the 2007–present downturn in the financial sector "poetic justice". former attorney general of the state of New York. that he had allocated capital too early resulting in suboptimal deals.Buffett also helped Dow Chemical pay for its $18. However. 1990. 2006. dollars against other currencies. Buffett entered in $11 billion worth of forward contracts to deliver U. He thus became the single largest shareholder in the enlarged group with his Berkshire Hathaway. Buffett announced that he was looking for a younger successor. respectively. according to Forbes.As a billionaire Buffett became a billionaire on paper when Berkshire Hathaway began selling class A shares on May 29. Simpson is only six years younger than Buffett. part of the late 2000s recession. On February 9.175 a share. The largest contribution would go to the Bill and Melinda Gates Foundation. In 2006. starting in July 2006. "a more robust disclosure" of factors used to value the contracts. he acquired General Re (Gen Re) for stock. "Buy American. In 2008. which provided $3 billion. In 2007. In 2002. Berkshire Hathaway acquired 10% perpetual preferred stock of Goldman Sachs. to fill that role.6 billion. In 2009.S. Buffett's Berkshire Hathaway suffered a 77% drop in earnings during Q3 2008 and several of his recent deals appear to be running into large mark-tomarket losses." he wrote for an opinion piece published recently in the New York Times.8 billion takeover of Rohm & Haas. in an unusual move. who runs investments at Geico. Their values have dropped to $40 billion and $37 billion. In October 2008. with a total net worth estimated at $62 billion by Forbes and at $58 billion by Yahoo. Buffett had previously selected Lou Simpson. Greenberg at AIG. who had been number one on the Forbes list for 13 consecutive years. Gates regained the position of number one on the Forbes list. the media reported that Warren Buffett had agreed to buy General Electric (GE) preferred stock. Buffett announced in June that he gradually would give away 85% of his Berkshire holdings to five foundations in annual gifts of stock. dethroning Bill Gates. underlining his instrumental role during the current crisis in debt and equity markets. Buffett having lost $25 billion in 12 months during 2008/2009. By April 2006. In 2002. the federal government settled with Berkshire Hathaway for $92 million in return for the firm avoiding prosecution in an AIG fraud scheme.The scale of the potential loss prompted the SEC to demand that Berkshire produce. when the market closed at $7. or perhaps successors. AIG's board forced Greenberg to resign from his post as Chairman and CEO under the shadow of criticism from Eliot Spitzer.
which led to a painful stagflation that lasted many years. and also received a 10% dividend (callable within three years). stated that a reason for the purchase was to diversify Berkshire Hathaway from the financial industry. Warren Buffett invested $2. Even if prices should rise. and that glass is invariably fogged. author of Snowball. That's the nature of bubbles – they're mass delusions. I still believe the odds are good that oil sells far higher in the future than the current $40–$50 price. In addition to suggestions of mistiming. 2011.6 billion as a part of Swiss Re's raising equity capital. On March 18. Buffet has been reluctant to give up the stock which averaged $1.billion GE at $22. including The Coca-Cola Company (NYSE:KO) which in 1998 peaked at $86. In March 2009. . very few people could appreciate the bubble.25 in the next five years. In June 2010. Not only has the economy slowed down a lot. Unfortunately. This deal is valued at approximately $34 billion and reflects an increase of a previously existing stake of about 22%. Buffett fears we may revisit a 1970s level of inflation. but people have really changed their habits like I haven't seen". Warren Buffett acquired Burlington Northern Santa Fe Corp. it's the windshield through which investors must peer. I'm on my way to an unknown destination in Asia where I'm going to look for a cave. In 2009. claiming that: Very.Measured by market capitalization in the Financial Times Global 500 Berkshire Hathaway as of June 2009 was the eighteenth largest corporation on earth. The merger with the Burlington Northern Santa Fe Railway (BNSF) closed upon BNSF shareholder approval in 1Q2010.4 million in dividends a day. stating: I'm going to be the Osama bin Laden of capitalism. rear-view mirror. moreover. Buffett divested his failed investment in ConocoPhillips. In February 2009. and Johnson & Johnson shares from his portfolio. If the U. questions have been raised as to the wisdom in keeping some of Berkshire's major holdings. I in no way anticipated the dramatic fall in energy prices that occurred in the last half of the year.. Buffett defended the credit rating agencies for their role in the US financial crisis.. with rights to own more than 20%.S. Alice Schroeder. Buffett sold some of the Procter & Gamble Co. saying to his Berkshire investors.In 2009. Buffett stated in a cable television interview that the economy had "fallen off a cliff. I bought a large amount of ConocoPhillips stock when oil and gas prices were near their peak. Additionally. Berkshire Hathaway already owns a 3% stake. Buffett discussed the difficulties of knowing when to sell in the company's 2004 annual report: That may seem easy to do when one looks through an always-clean. But so far I have been dead wrong. for $34 billion in cash and stock. let Goldman Sachs try to find me. the terrible timing of my purchase has cost Berkshire several billion dollars. however. In 2009. Armed forces can't find Osama bin Laden in 10 years. Goldman Sachs acquired Federal Reserve approval to buy back Berkshire's preferred stock in Goldman.
The inflation tax has a fantastic ability to simply consume capital. so the move came as a surprise to many investors and observers. after being asked first by presidential debate mediator Tom Brokaw. and intimated that John McCain's views on social justice were so far from his own that McCain would need a "lobotomy" for Buffett to change his endorsement.In November 2011. Buffett had said on numerous prior occasions that he would not invest in technology because he did not fully understand it. During the interview in which he revealed the investment to the public. it was announced that over the course of the last 8 months. in the third and final presidential debate. 2008. Buffett was named the top money manager of the Twentieth Century in a survey by the Carson Group. was named the most influential global thinker in Foreign Policy's 2010 report. Politics Buffett and President Obama at the Oval Office. On July 2. along with Bill Gates.500 per plate fundraiser for Obama's campaign in Chicago hosted by Obama's National Finance Chair. Penny Pritzker and her husband. During the second 2008 U. as well as Obama advisor Valerie Jarrett. Buffett has formally endorsed and made campaign contributions to Barack Obama's presidential campaign. Buffett backed Obama for president. 2010 In addition to other political contributions over the years. presidential debate. Buffett is recognized by communicators as a great story-teller. Obama mentioned Buffett as a potential economic advisor. as evidenced by his annual letters to shareholders.5 percent—the largest stake in IBM alongside that of State Street Global Advisors. he was listed among Time's 100 Most Influential People in the world. President Barack Obama awarded him the Presidential Medal of Freedom. Buffett was also finance advisor to California Republican Governor Arnold Schwarzenegger during his 2003 election campaign. Buffett.S. Buffett attended a $28. Warren Buffett had bought 64 million shares of International Business Machine Corp (IBM) stock. This unanticipated investment raised his stake in the company to around 5. It makes no difference to a widow with her savings in a 5 percent passbook account whether she pays . He warned about the pernicious effects of inflation: The arithmetic makes it plain that inflation is a far more devastating tax than anything that has been enacted by our legislatures. Writings Warren Buffett's writings include his annual reports and various articles. Buffet stated that he was impressed by the company's ability to retain corporate clients and said. In 2011. July 14. both mentioned Buffett as a possible future Secretary of the Treasury." Milestones Achieved Recognition In 1999. ahead of Peter Lynch and John Templeton. worth around $11 billion. In 2007. candidates John McCain and Barack Obama. Later. Most recently. "I don't know of any large company that really has been as specific on what they intend to do and how they intend to do it as IBM.
Bill Ruane (Sequoia Fund. frequently receive coverage by the financial media. As Warren says. Rick Guerin (Pacific Partners.” In the world of blogging. but lose even a shred of reputation and I will be ruthless. as well as advice in a Midwestern folk style. after donating billions of dollars to charity. This has been echoed across the business world for years and it applies to us all. Fortune (1977) In his article The Superinvestors of Graham-and-Doddsville. His net worth is up to $47 billion in the past 12 months Strength and Weakness Learning/Lessons from His Life Lose money and I will forgive you. giving it the nickname "Woodstock of Capitalism". Ed Anderson (Tweedy. Buffett was ranked as the second richest man in the United States with a net worth of US$37 billion with only Bill Gates ranked higher than Buffett. Wealth can always be recreated but reputation takes a lifetime to build and often only a moment to destroy. Buffett's writings are known for containing quotations from sources as ranging between the Bible and Mae West. he warned of investors' unrealistic expectations: Let me summarize what I've been saying about the stock market: I think it's very hard to come up with a persuasive case that equities will over the next 17 years perform anything like—anything like—they've performed in the past 17.100 percent income tax on her interest income during a period of zero inflation. prepared by Buffett. that beating the S&P 500 was "pure chance". Each year. Fortune (1999) Style Buffett's speeches are known for mixing business discussions with humor. Berkshire's annual reports and letters to shareholders. In his November 1999 Fortune article. an event drawing over 20. Schloss.). If I had to pick the most probable return.). Buffett presides over Berkshire Hathaway's annual shareholder meeting in the Qwest Center in Omaha. by highlighting the results achieved by a number of students of the Graham and Dodd value investing school of thought. and numerous jokes. It’s . Ltd. Nebraska.). Brown Inc. from appreciation and dividends combined. and those ever hurtful frictional costs. that investors in aggregate—repeat. Buffett named Walter J. “we will not trade reputation for money. —Buffett. it would be 6%! —Buffett. aggregate—would earn in a world of constant interest rates. Life is too short to cut corners to make an extra buck. Charles Munger (Buffett's own business partner at Berkshire).000 visitors from both United States and abroad. Wealth In 2008 he was ranked by Forbes as the richest person in the world with an estimated net worth of approximately US$62 billion. In 2009. or pays no income taxes during years of 5 percent inflation. Buffett rebutted the academic Efficientmarket hypothesis. we are writing because we love it. Tom Knapp. Inc. In addition to himself. 2% inflation. and Stan Perlmeter (Perlmeter Investments).
Life begins outside your comfort zone and that’s where courage is developed. without an ounce of action to follow…well. We get worried when people start to agree with us. This is the most empowering thing about web entrepreneurship and blogging. I might own a few more shares of Berkshire Hathaway stock. If you do this. Remember this when you are contemplating rushing to monetize your site by filling it with ads. Do what you’re passionate about. It’s far less crowded. The best way to be exceptional is with passion! As Tony Robbins says every day of his life. The best fruit is found out on the limbs. you are always in control of your talent. there are few people really willing to give it their all. Wealth is worthless if you’ve destroyed all your relationships to attain it. It will make you tougher and more likely to win the next time around. Why not get started early and get some of them out of the way! What’s the worst that could happen? As big wave surfer Laird Hamilton says “If you’re not falling then you’re not learning. Courage does not grow on its own. it must be constantly worked out and developed. Expect the world of . etc. Do not rush it and do not get greedy. This makes reputation more important than anything. Be your own best competitive advantage. Just like a muscle. The road less traveled makes all the difference. No one has succeeded without going through their own failures at some point. Develop those skills with the constant focus on helping others and you will never be without a job. Most people don’t succeed because they’re afraid to fail. Your money can be inflated away but your knowledge and talent cannot. learning and passion for life. It’s easy to forget that in a lot of industries and sub-cultures around the world where everyone is in constant competition. Do this and your supporters will love you for it (they will also likely multiply). These are exactly the topics that people want to read about. Say something fresh. “Live with Passion!” And trust me. Failure isn’t that bad anyway. than to jump out of bed dying to teach and help others. If I had a dime for every time I heard someone tell me about an idea they wanted to pursue or how much they would like to give blogging a shot. Get a little edgy with your posts. Makes it pretty easy to stand out. There really isn’t that much competition there. entrepreneurship and life. life is a lot more fun this way. The best defense in a tough economy is to add the most you can to society. And this can especially be the case when so many of us spend hours upon hours writing and developing our web services for free. We celebrate wealth only when it’s been fairly won and wisely used.” There’s no better way to be happier than getting your expectations down. I think I developed courage when I learned I could deal with hardship. To try and to fail is much better than to never try. there will be few people competing or running faster than you. In blogging. No matter the external circumstances. The goal is not to make money at all costs. Take the high road. Then it doesn’t make a difference what others are doing. It will stick with your visitors and they’re likely to come back. There will always be opportunities for talent. Not to mention it will be magnitudes more exciting. Help others and the fruit will be there. Most unhappiness comes from misaligned and unrealistic expectations of life. A bit sad but often true. Make a rule to always stay on the side of the minority in your life’s path and you will be greatly rewarded. You need to get your feet wet and get some failure under your belt. When you are exceptional you jump off the page. You are in control. links. not for the money. I cannot think of a better motivator to get you to write for free and love it.
Decide early in life to make your money by selling things that you really believe are good for the customers. but expect nothing of the world. Write and develop your business online with the expectation of it being a charity project to help others. If the only reason you find for doing something is because others are doing it then that’s not good enough. He doesn’t charge any money or ask for anything in return.org/wiki/Warren_Buffett http://beginnersinvest. Bibliography http://en. Follow it and you will never run out of posts to write or people to serve. Make this a rule before you write another word to your readers or offer another product to your customers. Go to bed a little wiser than when you woke up. what would disappoint my readers or customers? Then don’t do it. It requires a fundamental shift in psychology. Anything in addition will be icing on the cake. We all stand to learn to be better people. It comes from avoiding the things that are terribly wrong.htm . Always ask yourself. Life is about learning. We’ve done a lot of stupid things but we’ve avoided a small subset of stupidity and that subset is important. The stories are endless of people who did a few things right and were massively successful. This is the crux of the whole meeting. maybe that’s the one best to avoid. There has been no better way for me to continue to add value to my readers and followers than this life maxim. Do this for your blog or business and the success will come automatically.wikipedia. Some say this is two sides of the same coin. Life is too short and your reputation too fragile to not have your audience first and foremost in your mind and in your heart. Before Warren does anything. The lessons from Warren are endless. I had these huge aspirations of how quickly I’d have a massive following. writers and entrepreneurs from what he’s willing to share. yourself. Then you cannot help but live your life pleasantly surprised.com/cs/warrenbuffett/a/aawarrenbio_3. it got me down. he and his partner “invert.” They list every way imaginable in which they could fail at a particular task and then take massive effort to avoid those failures. Tim Ferriss is a master at evading the majority with his 4-Hour Work Week philosophy. Warren’s success does not come from doing so many things right. It’s about avoiding the dumb things. Except of course that we live a life with a burning desire to learn and do all we can to be valuable additions to society. Learn to be comfortable on your own path. Rules like this make it very difficult to lose. If you are always learning you can never lose. When it didn’t happen immediately. if everyone else is writing on a topic. always invert. It’s not. Keep this as the foremost mission of your business or blog and your time spent will be well rewarded. Keep this as your only rule for the day and the world will be yours for the taking.about. but then did something stupid that took them back to zero. When I first started blogging a few years ago. In fact.
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