Entrepreneurship
Warren Buffett | Early Life | Education | Family | Business | Wealth
Warren Edward Buffett, is an American business magnate, investor, and philanthropist. The current chairman and CEO of Berkshire Hathway.
He is known as the “Oracle of Omaha” for being one of the most successful investors in the world. He is currently ranked as the fifth richest person in the world.
Biography
| Born | Warren Edward Buffett August 30, 1930, Warren Buffett Age 91 |
| Hometown | Omaha, Nebraska, US |
| Education | University of Pennsylvania University of Nebraska-Lincoln(BS) Columbia University(MS) |
| Occupation | Businessman, Investor, Philanthropist |
| Years active | 1951- Present |
| Known For | CEO of Berkshire Hathway with Charlie Munger |
| Wealth Status | Billionaire(5th in the world) |
| Net worth | 106B |
| Political Party | Democratic |
| Spouses | Susan Thompson(m. 1952, died 2004) Astrid Menks(m.2006) |
| Children | Susan Alice Buffett Howard Graham Buffett Peter Buffett |
| Parents | Howard Buffett Leila Stahl Buffett |
| Relatives | Howard Warren Buffett(Grandson) Doris Buffett(Sister) |
| Website | www.berkshirehathaway.com www. letters. foundation |
| Signature |  |
Early Life
Buffett was the second child and only of Congressman Howard Buffett and Leila Stahl. He started his schooling at Rose Hill Elementary School. In 1942, Howard Buffett was elected for his first term in the United States Congress, this was the first of his four terms. The whole family shifted to Washington, where he completed his high school at Woodrow Wilson High School in 1947.
Buffett showed early signs of interest in investing and business. He wanted to go directly to business and skip college but was ultimately overruled by his father. He was inspired by the book, One Thousand Ways to Make $1000.
His first business venture was to sell chewing gum and Coca-cola bottles, weekly magazines going door to door. At 15, he made $175 monthly delivering Washington Post newspapers.
At 14, he invested in a farm owned by his father and bought a 40-acre farm worked by tenant farmers, only with $1,200, which he saved up.
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Investment Career
From 1951-to 1954 – Buffett worked at Buffett-Falk & Co, as an investment salesman.
From 1954-to 1956 – Buffett worked at Graham-Newman Corp, as a security analyst.
From 1956-to 1969 – Buffett worked at Buffett Partnership, Ltd. as a general partner.
From 1970- Buffett became the chairman and CEO of Berkshire Hathway Inc.
In 1951, Buffett returned to Omaha and was confident enough to teach “Investment Principles” at the University of Nebraska-Omaha. He met Benjamin Graham when he was on the board of GEICO insurance. He also met Lorimer Davidson, vice president of GEICO.
In 1952, Buffett got married to Susan Thompson, at Dundee Presbyterian Church. The next year they had their first child, Susan Alice.
In 1954, Buffett accepted a job offer at Benjamin Graham’s partnership. His starting salary was $12,000 a year. This year Buffett had his second child, Howard Graham.
In 1956, Buffett started his company, Buffett Partnership Ltd.
In 1958, his third child Peter Andrew was born. He operated five partnerships that year. The next year, 1959, it grew to six partnerships and he then met his future business partner Charlie Munger.
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Assuming Berkshire
In 1962, Buffett became a millionaire because of all his partnerships. This year he merged all his partnerships into one. Buffett then invested in and controlled the textile manufacturing firm, Berkshire Hathaway.
He put Ken Chace as the president to run the company. In 1966, He claimed the textile firm his worst trade. In 1985, the last mill that was the core of Berkshire Hathaway was sold.
In 1973, Berkshire began to buy stocks in the Washington Post Company. He became close friends with Katherine Graham, who controlled the company.
In 1979, Berkshire began to buy stocks in ABC. Capital Cities purchased $3.5 billion of ABC in March 1985. Buffett helped with the deal at a return of 25% stake in the combined company.
In 1987, Berkshire Hathaway bought a 12% stake in Soloman Inc., then, making it the largest shareholder company with Buffett as the director. The next year, in 1988, he bought 7% stock in The Coca-Cola Company.
At present, if you ask the question, “What does Warren Buffett owns?” then the answer would he owns Berkshire Hathaway which owns about 60 companies.
And if you are typing, “Keystone Pipeline Warren Buffett”, you will get numerous false stories about hidden investments in the pipelines.
As Billionaire
Buffett became a billionaire by selling a class A share of Berkshire Hathaway, on May 29, 1990, when the market was closing at $7,175 a share. In 1998, he bought General Re.
In 2002, Buffett entered the $11 billion for forward contracts to deliver the US against any other currencies.
By April 2006, His gains through these contracts were over $2 billion.
In 2006, Buffett announced that he would give 85% of his Berkshire holdings to 5 major foundations as gifts. The largest portion went to the Bill and Melinda Gates Foundation.
In 2008, Buffett became the richest person in the world with a total net of $62 billion, overtaking Gates, according to Forbes. In 2009, Gates again ranked the top position surpassing Buffett in the second position.
In 2009, Buffett sold Johnson & Johnson and Procter & Gambles Co. from his portfolio.
In 2009, Buffett said in a television interview, about the economy that,
Investment Philosopher
In his annual letters to stakeholders,
On the Letters to Shareholders for the year 1988:
Personal Life
In 1949, Buffett started liking a young woman, and to compete with her boyfriend who plays the ukulele, Buffett bought a ukulele. From then music became a key part of his life, and he played the ukulele ever since.
Also played a part when he met his first wife Susan Thompson. Buffett often plays the ukulele in the stakeholder’s meetings.
He got married to Susan Thompson married in 1952 and had three children, Susie, Howard, and Peter. The couple started living separately in 1977, but still, they remained married till she died in July 2004.
In 2006, Buffett married his longtime companion Astrid Menks on his 76th birthday. Susan introduced those two together and was a power trio. They even signed Christmas cards as “Warren Susie and Astrid”.
In 2006, they lived in the same house that Warren Buffett owns since 1958 for $31,500. Warren Buffett House in Laguna beach since 1971 for vacation is worth $150,000, he sold it for $7.5 million in 2018.
In 2009, Buffett was elected to the American Philosophical Society. He along with Christopher Webber worked on an animated series called the “Secret Millionaires Club”.
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Health
In April of 2012, Buffett was diagnosed with stage 1 prostate cancer. He underwent treatment in mid-July. On September 15, he had successfully completed his 44- day radiation cycle, saying “it’s a great day for me” and “I am so glad to say that’s over.”
Ending with his great words!
“Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.”
Bibliography
Books by Buffett
In 2008, USA Today reported that there are at least 47 books published with the name Buffett on them.
Books or publications by Buffett himself.
- The Essays of Warren Buffett: Lessons for Corporate America, Warren E. Buffett, And Lawrence A. Cunningham (April 11, 2001).
- The Essays of Warren Buffett: Lessons for Corporate America, Second Edition, Warren E. Buffett, And Lawrence A. Cunningham (April 14, 2008).
Books about Buffett
- Carol J. Loomis, Tap Dancing to Work: Warren Buffett on Practically Everything, 1966–2012: A Fortune Magazine Book.
- Roger Lowenstein, Buffett, Making of an American Capitalist.
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