Warren Buffet is known as the richest man in the entire world with a projected fortune amounting in billion. He started to buy shares of Berkshire Hathaway, part costs a little. Today after many years, Warren Buffet who started a long ago, with buying shares is now Berkshire’s chairman and CEO and one share of the company’s class A stock is worth close to high rate dollars. He credits his astonishing success in several basic strategies.
Here is the story.
Childhood and Early Life
Warren Edward Buffett was born in Omaha, Nebraska, to a stockbroker and future congressman. As a child, Buffett reportedly showed interest in stocks, writing stock prices on the chalk board in his father’s office. Warren Buffett wanted to be a millionaire by an early age.
Education and Motive
Buffet’s elementary education started at Rose Hill Elementary School in Omaha. He then went to the Alice Deal Junior High School and soon completed his Master of Science in Economics. From the childhood days of his life, Buffett was always deeply interested in trading and it is from the stock market that he started making and saving money.
Other means of Income
Buffett worked in his grandfather’s grocery shop and adopted many other means of income like selling cold drinks, weekly magazines, stamps and chewing gums door to door and delivering newspapers and Buffett continued to earn by the means.
Things took a turn when Buffett and one of his friend invested a small amount to buy a pinball machine that they installed in a barber’s shop. As they started generating income out of that machine, they soon installed some more machines in other barber shops.
Work for Graham
Warren yearned to work for Graham and that too without any fees. But he was refused the job and soon he came back to Omaha. He then started pursuing classes on “Investment principles” during which he also purchased a gas station, which unfortunately didn’t turn out to be profitable for him.
Buffet formed the firm Buffett Partnership Ltd. in his hometown of Omaha. Utilizing the techniques learned from Graham, he was successful in identifying undervauled companies and became a millionaire. One such enterprise Buffett valued was a textile company named Berkshire Hathaway.
The company grew to six partnerships operating the whole year and Buffett was introduced to Charlie. This was named Sanborn Map Company. Brick by brick he reached at the ultimate position by extending and expanding his business while planting himself with a position on the Board of Sanborn.
Know when to quit
As a teen, once Warren Buffet went to the race track where he bet on a race and lost and to recover his funds back, he bet again on another race and lost again. He was left with nothing. He felt sick on wasting a week’s earnings and he never repeated the same mistake again. Always knew that when to walk away from a loss and never ever let angst and fear fool you into trying again.
Buffett made an announcement that he would be giving his entire fortune away to charity, committing a percentage of it to the Bill and Melinda Gates Foundation. This donation became the largest act of charitable giving in United States history.
The difference between successful people and really successful people is that really successful people say no to almost everything.