life story of mr warren buffet
It's not the end result but the journey that matters hello everyone today's Blog is about a man who despite being 89 years is not only young at heart but his style of doing business and investing is unparalleled ranked at number six in the Forbes list of the richest persons in the world mr warren buffet proves to be one of the best inspirational figures of the investment world let us know his life story warren buffet was born in 1937 in the city of Omaha united states his father worked as a salesman in a stock broking firm but sadly during the 1929 great depression he lost his job determined not to give up he started his own stock broking firm where other children were enjoying their childhood playing messing around warren buffet loved playing around with numbers since childhood
He had a keen interest in reading books he found pleasure in all of these things it would not be wrong to say that since early days he had a mind of a business person he was always up to something trying his hand on small business as if it was meant for him all along when he was around seven to eight years old he read a book thousand ways to make thousand dollars one of the thousand ways that attracted mr buffet was the business of pinball machines his mind started to imagine numbers he analyzed how much would a pinball machine cost how many pinball machines can he buy by the profit made from the first pinball machine he liked this idea and in partnership with a friend he bought a pinball machine and placed it in a barber shop the objective behind it was that people who would be in the waiting line instead of just sitting idly they could play the pinball machine the strategy worked he started to make a profit from his little venture he reinvested this profit into buying more pinball machines and placing them in barber shops all over the city he sold his profitable venture at twelve hundred dollars after some time he always had the skills required to be a good businessman at the tender age of seven to eight he started doing small business one after the other for example distributing newspapers selling Coca-Cola chewing gum magazines door-to-door he found satisfaction and joy in doing such small businesses although his family was financially stable and he wasn't obliged to do this at a young age of 14 he bought his first land of 40 acres from the money that he had saved from all the businesses that he had done growing up by the time his college ended he had a fund of 9 800 dollars in his savings his father often used to call him fireball because of his nature of starting businesses at such an early age his father had tremendous confidence in him mr buffet gained insightful guidance and wisdom from his father which is the reason why he gives the credit for his success to his father he applied for his post-graduation in Harvard university which got rejected while he was searching about different colleges and reading about the teachers he got to know that mr Benjamin graham and mr David dog both of them teach at Columbia university mr buffet had already read a book co-authored by them the name of the book was security analysis and he was highly inspired by this book to learn about investing from mr graham and mr dog he took admission at Columbia university this turned out to be a life-changing decision which he realized at later stages of his life professor Benjamin graham was the inventor of value investing and is also known as the father of value investing after learning the same from professor graham warren buffet applied in graham's company graham newman corp which was rejected after two years professor graham offered a job to warren buffet in his partnership firm for two years warren buffet worked as a security analyst with graham newman corporation he improved his value investing skill
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He had control the first thing he did was fire the management that tried to con him in the first place on this incident he has once quoted the greatest enemies of the equity investor are expenses and emotions and he believes that he took an emotional decision during this investment and thus regards it as his mistake but he acted on the mistake and turned it into a successful business later in 1996 he closed his partnership business and took over as the chairman of berkshire hathaway after he took over as the head of the firm he turned it into a holding firm as its textile business wasn't up to the mark for those who don't know holding company is that firm which invests in other companies similarly warren buffet started to invest in various firms like coca-cola washington post geico etc through berkshire hathaway later he also entered the insurance sector by buying some companies working in the same sector let us discuss warren buffet's first investment and the lesson he learned from it he made his first investment at a very young age of 11 years still he believes that he was wasting his life till he was 11 years old the first investment made by him was in a firm named city service where he bought shares for himself and his sister at a price of 38 dollars initially the stock price of city service went down to 29 but it gained momentum and soon the share price touched the figure of 40. at this price he sold the city service shares he owned but after he sold off those shares the price shooted to 200 from this incident warren learned to be patient with his investments and to give time for the things to work hence his focus mainly lies in investing for the long term for instance he started to buy the shares of washington post in 1973 and went on to incur a return of more than 9000 on it although after years of being invested in it he sold all the 28 percent shares of washington post in 2014. in his view buying stocks of any firm is like buying that business as a result he invests in the businesses which he understands so as to carry out a deep analysis of the company similarly he had invested in coca-cola back in the year 1988. he himself is a big fan of the soft drink and loves to consume it on a daily basis if we talk about the investment strategy of mr warren buffet it is a culmination of the strategies propagated by mr benjamin graham and philip fisher he says he's 85 benjamin graham and 15 percent philip fisher benjamin graham's strategy says that buy a stock when it's available at less value or is undervalued whereas philip fisher's philosophy states that one should invest in quality business in fact he believes that a quote given by benjamin graham in his book intelligent investor are the most important words inked on investment the quote goes like this investing is most intelligent when it is most business-like if you look at the portfolio of mr buffet then you will notice that he invested the most during the times of recession or when a firm was facing one-time problems because during that time he could buy the share at low value two rules that warren buffet sticks to are never lose money and the second one is never forget the rule number one apart from benjamin graham and philip fisher he follows respects and gives huge credit for his success to mr charlie munger who also happens to be his business partner one of the greatest things that one can learn from him is his reading habit he spends a good amount of time on a daily basis reading yes dear friends reading and learning are of utmost importance if you wish to have success in the investment world despite featuring in the list of the richest persons of the world and having a fortune he's still a down to earth person he still lives in the house he bought back in 1958 and drives his car by himself since 2000 he has donated around 46 billion dollars towards charity you all must be wondering even at the age of 89 why does he need to learn well business as well as investing are his passion and he does not do it for merely fulfilling his needs but he enjoys it you would be surprised to know of that about 90 percent of the wealth he owns is earned by him after he turned 50 years old that is the best example that goes with the saying that age is just a number if you all learn something noteworthy from this life story of mr warren buffet then do she