Warren Buffett is one of the most well-known investors, whose fortune is estimated as $ 62 billion at the beginning of 2008. He was born in 1930 in Omaha, Nebraska. He is known as the Oracle of Omaha.
His father — Howard Buffett was a stockbroker and an active member of the Republican Party. As a kid Warren got acquainted with the exchange and wanted to play there. He bought three shares of “Cities Service Preffered” at the price of 38 dollars each. waiting until the price got increased to nearly $ 40, he sold them earning $ 5.
Here he learnt his first lesson. How great the boy was disappointed when the following week the price for the shares soared up to $ 200. Subsequently, Warren would invest only in long-term projects.
At the age of 14, he bought 40 acres of land in Nebraska for $1200 and then leased it to the farmer. He bought broken slot machines, repaired them and put them into operation. Soon his income reached $ 150 a week.
Buffett studied from Benjamin Graham at Columbia University, New York. As W. Buffett stated, Graham laid the foundations of smart investment. After graduating from Columbia University he became a professional trader.
At the age of 20 he was already seriously keen on the securities market. “Intelligent Investor” by Benjamin Graham made great influence on the formation of a future financial tycoon. It was his Bible. Its main recommendation is to ignore the rules and trends cultivated on the Wall Street and to hunt for stocks sold below real cost.
In 1962, he was attracted by the textile factory “Berkshire Hafrtway”, languishing in misery as the rest of the US textile industry. The flair served him well, expectations were right, and this company became the core of the future financial empire.
• In 2008, Warren Buffett topped the list of the richest people in the world (according to the Forbes).
• The main Buffett capital is the market value of his stake in Berkshire. For example, his annual salary makes up 100 thousand dollars.
• Buffett is unpretentious in life, avoids luxuries, with exception of only private jets that are truly his weakness. For example, he eats in the fast food chain, which he likes so much that he has bought it.
• Buffett likes playing music on the ukulele and playing bridge, including with Bill Gates. In addition, Buffett enjoys playing online poker, for which he hired Hathaway programmer to work in Bekshire.
• Once a year, Buffett has breakfast with the man who has won this right at the auction. In 2007, the breakfast with Buffett cost the winner $ 600,000. The gathered funds are given on charity.
• Buffett has an extraordinary sense of humor, always willingly making fun of himself. Among his most well-known jokes: “I buy expensive suits. They just look cheap on me “.
• In June 2006, Buffett announced the donation of more than 50% of his fortune, or about $ 37 billion to five charities. Most of the funds went to the fund managed by the Bill and Melinda Gates Foundation. This step was the most generous act of charity in the human history.