This is the story of a person who is an American investor, businessman magnate, and a philanthropist. This man is known as the most successful investor of the century and is consistently ranked among the world’s richest people. He is none other than Warren Buffet. As of Forbes Billionaire 2019 list, Warrant Buffet stands at the 3rd position with a net worth of $83.2 Billion. Warren Buffett is the CEO and Chairman of Berkshire Hathaway. Let’s discuss about the journey of Warren Buffet to become the world’s 3rd richest person.
Warren Buffett was interested in business, investment, and stock market since his childhood. He learned business and economics from the very beginning and it was fun for him. Even in his childhood days, he showed his money making and money saving skills. He used to sell Coca Cola, chewing gums, and magazines door to door. He even worked in his grandfather’s grocery store. During his high school, Buffett was making money through the sales of newspapers and stamps. At the age of 15, he was earning $175 monthly. He soon bought a 40-acre land to invest in his father’s business. He bought this land for $1200 out of his savings. By the end of the school, he had accumulated $9800 in savings ($10400 today).
Warren Buffett was born as Warren Edward Buffett on 30th August 1930. He was born in Omaha, Nebraska, United States. He was born to Howard Buffett and Leila Stahl Buffett. Warren’s father was a businessman, investor, and politician. After his school, he went on to graduate from Columbia Business School where he moulded his investment philosophy around the concept of value investing. After this, he attended the New York Institute of Finance to focus on his economics background. Soon he started various business partnerships. He created Buffett Partnership Ltd. which acquired a textile manufacturing firm known as Berkshire Hathaway.
Becoming a Billionaire
In 1962, he became a millionaire because of his partnerships which had an excess of $7,178,500. Out of this, $1,025,000 belonged to Warren Buffet. He merged all of the partnerships into one and took the control of Berkshire Hathaway. Berkshire soon began to acquire stocks of various companies. His first investment in private business was in Hochschild, Kohn & Co. in 1988, Warren began buying stocks in Coca Cola company. He first purchased 7% stock in the company for $1.02 Billion.
Warren became a billionaire when he sold class A shares of Berkshire Hathaway on 29th May 1990. In 2002, Buffet entered into the $11 Billion worth and after a few years, he announced that he would be giving 85% of Berkshire holdings to five foundations.
Warren Buffet’s Famous Quotes
- Hang out with people who are better than you and you will drift into that direction.
- It takes 20 years to build a reputation and 5 minutes to ruin it. If you think about that, you will do things differently.
- Honesty is a very expensive gift. Don’t expect it from cheap people.
- If you are in the luckiest 1% of humanity, you owe it to the rest of humanity to think about the other 99%.
- The most important investment you can make is in yourself.
In the whole world, Warrant Buffett and Bill Gates are known as the most charitable American Billionaires. Warren Buffett founded Buffett Foundation in 1964 as a vehicle to manage his charitable giving. In 2004, he renamed this foundation with the name of Susan Thompson Buffett Foundation in honour of his wife after her death. Buffett’s intention was to donate 99% of his wealth to Buffett Foundation but after he looked at Bill & Melinda Gates Foundation, he was totally impressed. In June 2006, Buffet donated 85% of his wealth to the Bill& Melinda Gates Foundation. Buffett had also started The Giving Pledge to encourage the richest people around the world to take a commitment to give most of their wealth to charity.