Biography of Warren Buffett

 

Warren Buffett

Early life

Warren Buffett was born in 1930 in Omaha, Nebraska. He is the son of Leila and Howard Buffett.

He told that his mother was a housewife but very intelligent and he learned from his mother. His mother was intelligent in maths that's why he loved maths. He also told that his two sisters were much more intelligent than him. But due to the gender difference, there were some limitations set for them.

He was very intelligent from his childhood. His father had a library and he read all the books when he was just ten-years-old. He read about the stock market, share market. 

Buffett considered his father as his biggest mentor. Because he advised him at every walk of his life.

Education

He began his education at Rose Hill Elementary School. He read a book at the age of seven "thousand ways to make a thousand dollars" and this book changed his life. At a very small age i.e 7 he started working as a salesman. He provided services door to door of coca-cola, magazines, and many more kinds of stuff. In 1942, his father joined politics. The whole family shifted to Washington, D.C. Warren was upset by this shifting because he loved his hometown Nebraska. He finished his school from Alice Deal Junior High School.

He graduated from Woodrow Wilson High School in 1947. He used to trouble his teachers in college. But his teachers did not give any punishment to him. Because he sold shares to his teachers. And his teachers thought him as a very brilliant student.

As his interest developed in business, he wanted to drop out his college. But his father forced him to complete his college.

As a Businessman

At the age of 11, he bought three shares at  $38 each. After purchasing the shares amount went to $20. And after some time it went to $40. He sold all his shares. But after selling it goes to $200. He learned the first lesson of his life that in business patience is the most important to unlock success.

At the age of 15, he purchased a lot of shares from different companies. He earned more than $175 monthly by delivering the newspaper. At the end of his college, he saved $9800.

In fact, he suggested everybody that savings are also the key to success.

At the age of 16, he started studying from the University of Pennsylvania. in the third year of his college, he moved to the University of Nebraska to finish his degree.

In 1951, he completed his master's from Economics at Columbia University. Where he met to Benjamin Graham, Buffett considered him as his ideal. He further studied from the New York Institute of Finance.

In 1949, he read the book "The Intelligent Investor" written by Graham. He was influenced by this book. He worked for his ideal for two years at Graham-Newman Corp.

As a Millionaire

In 1956, he made his firm "Buffett Partnership Ltd" in Omaha. He applied all the techniques that he learned from Graham. He was successful in identifying undervalued companies and became a millionaire.

He purchased shares of a company named Berkshire Hathaway. But this company was in a loss. He began accumulating stock in the early 1960s, and by 1965 he had assumed control of the company.

In 1962, he became a millionaire because of his partnerships. He made $7,178,500 of which over $1,025,000 belonged to Buffett.

Later the company Berkshire Hathaway proved successful. Because he did hard work and focus to develop the textile business.

He buying assets in media (The Washington Post), insurance (GEICO), and oil (EXXON). Because he did not only want to focus on textile firms. So he purchased shares of different firms to get more profit.

He purchased shares of Coca-cola and gained a 9000% return of investment. He became director of the company coca-cola from 1989 to 2006. He also became director of Citigroup Global Holdings, Graham Holdings Company, and The Gillette Company.

As a billionaire

He became a billionaire on 29 May 1990, by selling shares with the market closing at $7,175 a share.

The price of Berkshire Hathaway's shares hit $200,000 a share for the first time in 2014. His capitalization reached $328 billion.

About Personal life

His wife was Susan Thomson. The couple was separated in the 70s. They had three children. Susan Alice Buffett, Peter Buffett, Howard Buffett. His wife died in 2004. His wife was very sympathetic to her nature. She believed that always help the poor and she donated money in charity funds.

Buffett gave $28 billion in a charity between 2006 to 2017. This report was given by USA Today. From the records of 2018, he had a net worth of $84 billion.

He did a big announcement in June 2006, that he gave his entire fortune away to charity and 85% of it to the Bill and Melinda Gates Foundation.

Currently, he is the CEO of Berkshire Hathaway and the third richest person in the World.

Tips from Buffett to get success 

👉He thinks that patience is the most important key to success.

👉He always advises that saving money and use in the bad time is also very important.

👉He advises following a person (ideal) like his ideal was Benjamin Graham.

👉He told me that always follow passion and you will definitely get success.

👉He told that in business the number of employees does not matter. But the thing that matters is the quality of employment. He always believes in good teamwork.

Thanks!