No doubt you will have heard about Warren Buffet. He sometimes called the Oracle of Omaha, that guys who owns Coca Cola or even Bill Gates’ mate.
If investing is your thing then this guy is someone you MUST read up about. With a net wealth of around $82 billion from investing, Warren B is the closest thing I know to a sure bet in investing and has influenced huge numbers of successful investors through his books and articles through the years.
Born in Nebraska, Omaha in 1930, Warren’s dad was a stockbroker. Warren would visit his dad at work and by 11, had made his first investment! Warren went on to develop a number of businesses while still in high school including a pinball machine rental business with a friend that made him $10,000 by 20.
After going to University at age 16, Warren ended up studying under Benjamin Graham (the father of value investing) at Columbia University. Graham introduced Buffett to value investing which is the investing method still used by Buffet.
Early Business Life
After working as an analyst for Graham straight out of University for a few years, he founded his own business; Buffett Partnership. Buffett’s ability to spot undervalued stocks meant the business grew quickly and one of the companies invested in was Berkshire Hathaway.
Berkshire was a textile company based in Omaha. Buffett had been building an investment in the business over some time and eventually bought out the company in 1966. Often described by Buffett as his worst investment and realising that the textile industry in the US was declining, Berkshire Hathaway became an investment vehicle for Buffett and his partners (including his now life long friend Charlie Munger) and with the closing of Buffett Partnership became the only investment vehicle used by Buffett. Investments were made in a range of businesses throughout the 60’s and 70’s including insurance companies and media businesses. In 1988, Buffett saw an opportunity in Coca Cola and invested, eventually buying 7% of the stock for over $1 billion. This proved to be one of Berkshire Hathaway’s best investments and one the company still holds today.
Buffett became a billionaire when Berkshire Hathaway started to sell class A shares in 1990. By this time, Buffett was accumulating wealth fast and decided he was going to use it for good.
With all that wealth, what do you do? Buffett decided that he would give away most of his fortune before he died. Between 2006 and 2017, Buffett gave away approx. $28 billion with a large amount of this money going to the Bill and Melinda Gates Foundation. He continues to put his money towards good causes and philanthropic enterprises.
Warren Buffett had a knack at an early age for investing but has been able to use his knowledge to understand the markets and the stocks he buys. If you are serious about investing then I recommend you pick up one of Warren’s books on investing.
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