Warren Buffett- Story of Billionaire and Philanthropist

Introduction 

Warren Buffett

Warren Buffett, the full name Warren Edward Buffett who’s an investor and Philanthropist. He is currently the Chairman and CEO of Berkshire Hathaway. He was born on 30th August 1930 in Omaha, Nebraska, USA. His mother was Lily and his father Howard, who was Stockbroker and turned back to a congressman as a profession. Buffett says the intelligence he got is all because of his mother. This intelligence made him a six-year-old child making money.

His grandfather used to run a grocery shop and there he used to purchase coca-cola and resold each of the bottles by making a profit of five cents. From purchasing a coca-cola, gaining 5 cent profit to having 9.3% of all coke shares outstanding as of 2020 year-end. His journey is tremendously motivating and his dedication with perseverance is amazing till now. Buffett with his compounding still making many dollars, at age of 90 he is making $81.4 billion being the richest person in the world.

Full Name Warren Edward Buffett (age 91)
BornAugust 30, 1930
Omaha, Nebraska, U.S.
EducationUniversity of Pennsylvania
University of Nebraska–Lincoln (BS)
Columbia University (MS)
Net worth10,370 crores USD (2021)
OccupationBusinessman, investor
philanthropist
ParentsHoward Buffett
Leila Stahl Buffett
SpouseSusan Thompson
ChildrenSusan Alice Buffett
Howard Graham Buffett
Peter Buffett
ownerBerkshire Hathaway

Warren Buffett hustler as a teenager 

Warren Buffett Childhood itself provides a vision ” Why Warren Buffett is a billionaire now“. While sitting in his father’s office he used to read a lot from childhood. This reading habit from childhood made him know the value of investments. Buffett’s favorite book was ” One Thousand ways to make $1000 which make him interested in the investment. He started searching for new business ideas because of this book. He worked a lot by using this book like recycling coke bottles, selling lemonade, delivering newspapers door to door, and selling gum door-to-door, etc. These gigs made him a real self-made billionaire in the future.

As a teenager, he became involved in numbers and Compounding of money. He says ” He loves numbers and money values”. After collecting the pennies slowly, he started investing them in shares and other businesses. Warren Buffett was called a “fireball” by his father Howard. The name was given to him because he hustled a lot while he was a child.

The Pinball business

At 17, Buffett started a  partnership with his friend. He got a ” Mr.Wilson’s Pinball machine”. He told his friend that ” I will buy a machine for $25 and you have to fix it. This idea had massive Potential. He started finding a barber to install the machine. The idea behind this business was that he would be installing this pinball machine in the barber’s waiting area, offering half of its profit to him. The barber agreed because the Pinball machine would create interest among customers and they wouldn’t leave. He got his first profit of $4 from the first machine. This idea was making dollars for him so he installed seven to eight machines in different barbershops. Mr.Wilson’s pinball machine made a lot of money for him.

Warren Buffett ended the business by selling him after gaining $1000 & after a year. This was the earliest pick business by Warren Buffett.

Education of Warren Buffett

Warren Buffett began his education at Rose hill elementary school. But during this, he and his family shifted from Nebraska to Washington D.C. Then he attended Alice deal Junior high school and graduated from Woodrow Wilson high school in 1947.

After graduating from high school in 1947. He was 17 years old and he wasn’t interested in going to college. His father first urged him to go to and attend the Wharton Business School at the University of Pennsylvania. But Warren Buffett graduated a few years earlier than the actual period to graduate.

Then for higher studies, he applied for the Harvard business school which rejected him by saying “too young”. But the fun fact is now when Warren Buffets writes the letter to his investor’s big universities colleges read it and analyze it.

After rejection from Harvard business school, he tried Columbia business school. He said in an Interview on the H.B.O channel

” They Interviewed me for about 10 minutes and said: ” forget it, you are not going to Harvard”. Warren Buffett also said in his interview that  “Harvard rejection was the best thing that ever happened to me “.

He got into the Columbia Business School. Where he got two professors who entirely changed his life. Ben Graham and David Dodd taught him about life investment.

Warren Buffett mentor – Benjamin Graham

Ben Graham was known for simple and best investment principles. His Book: The Intelligent Investor is still selling and people are gaining profit by applying his principles

He introduced Mr. Market as an investment analogy, the imaginary person who sells or buys shares at different prices. His theory of value investing is still followed and read by Warren Buffett.

Warren Buffett says that the best book he read at the age of 19: The Intelligent Investor is the best book written on Investment. Warren Buffett when entered Columbia Business School he followed the ideology of Ben graham. He was very much influenced by his principle that he was the only student graduate with At in Graham’s class

After graduating from Columbia. He was ambitious for working with Ben Graham. Ben Graham was having GEICO named the insurance company. Buffett wanted to work under him for free without getting paid. It wasn’t a decision but a dream to work with his mentor. He tried hard but Graham denied it. His opportunity and dream looked unsatisfied and hence he returned.

After working and doing some of the unsuccessful business and teaching students at University. One day, Graham Invited his “stockbroker to come and work with him. Finally, that opportunity and dream were achieved by Warren Buffett.

Diffrence in Ideologies

Buffett spent days in Graham’s office studying the S & P reports (standard and poor), Investment opportunities, reports Cash Flow statements, etc. But after some time the Ideological difference between Graham and Warren Buffett arose. According to Benjamin Graham, only numbers are enough to judge a company. Graham says it’s enough to focus on the quantitative aspect of the company. 

According to Warren Buffett, it’s important to include manpower, the leadership of the company, plans, goals of the company, etc. He says Quantity + Quality approach while investment. At last, the end happened between both of them after these ideological differences. It’s not important whether it was necessary to end up like this or not. But one thing is for sure Warren Buffett still reads the Book “The intelligent investment”. He still considers Ben Graham as his mentor and still applies his value investment principles.

How did Buffett build Berkshire Hathaway

Berkshire Hathaway was a textile manufacturing company, established by Oliver Chase in 1839. It was around 1955 when Berkshire fine spinning was associated with the Hathway manufacturing company. The company was going on so well but after World War, I was impacted. The general textile industry started downfalling.

In 1962, Buffett started buying stocks of Berkshire Hathaway company. After knowing that the company started declining because of the effects of World War I. This investment in the textile industry was done by him because he knew the textile industry was flourishing. It was around 964 when the company made a tender offer to buy back towards Warren Buffett. Showing Stake at $11 ½ per share. Buffet agreed with the deal and said “yes”. But after writing was received by Buffett the price was $113/8 per share. Undercutting the lower amount made him very much angry. Instead of selling it, Buffett started buying it more. He had a majority of Berkshire Hathaway stocks.

Buffett expanded the Berkshire Hathaway company into insurance and investments. He owned two companies National indemnity company and Government employers Company (GEICO) acquitted in 1970. Till now Berkshire Hathaway is earning its best because of the base over investment and insurance sector.

The company has given over $200 billion in 45 years. But still, now he says buying Berkshire Hathaway was a major mistake he has ever made and instead of buying it, he should have invested in another insurance business.

He invested a lot in the company and the company started taking its stands on investments. Warren Buffett earned millions and later he was made the owner of Berkshire Hathaway.

Warren Buffett – HBO Documentary

list of Companies Berkshire Hathaway owns

The given below companies are only a few of them under the Berkshire Hathaway Inc. empire. The Warren Buffett company Berkshire Hathaway deals in different sectors and is diverse in the market. Many of them are so famous that you would be familiar.

  1. Acme Brick Company
  2. HomeServices of America
  3. Applied Underwriters
  4. International Dairy Queen, Inc.
  5. Ben Bridge Jeweler
  6. IMC International Metalworking Companies
  7. Benjamin Moore & Co.
  8. Johns Manville
  9. Berkshire Hathaway Automotive
  10. Jordan’s Furniture
  11. Berkshire Hathaway Direct Insurance Company (THREE)
  12. Justin Brands
  13. Berkshire Hathaway Energy Company
  14. H. Brown Shoe Group
  15. Berkshire Hathaway GUARD Insurance Companies
  16. Larson-Juhl
  17. Berkshire Hathaway Homestate Companies
  18. LiquidPower Specialty Products Inc. (LSPI)
  19. Berkshire Hathaway Specialty Insurance
  20. Louis – Motorcycle & Leisure
  21. BH Media Group
  22. Lubrizol Corporation
  23. biBERK Business Insurance
  24. Marmon Holdings, Inc.
  25. BoatU.S.
  26. McLane Company
  27. Borsheims Fine Jewelry
  28. MedPro Group
  29. Brooks
  30. MiTek Inc.
  31. Buffalo NEWS, Buffalo NY
  32. MLMIC Insurance Company
  33. BNSF
  34. National Indemnity Company
  35. Business Wire
  36. Nebraska Furniture Mart
  37. Central States Indemnity Company
  38. NetJets®
  39. Charter Brokerage
  40. Oriental Trading Company
  41. Clayton Homes
  42. Pampered Chef®
  43. CORT Business Services
  44. Precision Castparts Corp.
  45. CTB Inc.
  46. Precision Steel Warehouse, Inc.
  47. Duracell
  48. RC Willey Home Furnishings
  49. Fechheimer Brothers Company
  50. Richline Group
  51. FlightSafety
  52. Scott Fetzer Companies
  53. Forest River
  54. See’s Candies
  55. Fruit of the Loom Companies
  56. Shaw Industries
  57. Garan Incorporated
  58. Star Furniture
  59. Gateway Underwriters Agency
  60. TTI, Inc.
  61. GEICO Auto Insurance
  62. United States Liability Insurance Group
  63. General Re
  64. XTRA Corporation
  65. Helzberg Diamonds

References

How Warren Buffett made his billions and became the ‘Oracle of Omaha’ CNBC

Warren Buffett – Wikipedia

Berkshire Hathaway – Wikipedia

Profile of world billionaire – Worlds the 6th richest person – Forbes

Amazing Case Study On Warren Buffett | Biography of Share Market Legend | Dr. Vivek BindraDr. Vivek Bindra: Motivational Speaker

The Biography of Warren Buffett – The Story of Berkshire Hathaway’s Billionaire Chairman – the balance

list of Companies Berkshire HaList of assets owned by Berkshire Hathaway

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