A self-made billionaire and the second richest man in the world, Warren Buffet is also a successful businessman and one of the most respected men ever known to us.
Born on 30th August 1930, Warren obtained the ability to calculate columns of numbers off the top of his head at an early age. When he was 6, he purchased 6 packs of Cocacola from his grandfather’s grocery store at 25 cents each and those sold them for a nickel, securing a 5% profit. Most children at that age often play where Warren was making profits.
At 11, he bought 3 shares of City’s Service Preferred at $38 but the stock fell to $27 per share in no time. Yet he kept his patience until the shares surged to $40 and then made a jump to $200. So, “patience is a virtue” has always been his statement.
Warren graduated in 1947 when he had already made $5000 by delivering newspapers. After staying for two years at the University of Pennsylvania, he returned home and got transferred to the University of Nebraska, Lincoln, where he completed his graduation in three years.
Ben Graham during the 1920s became very well known to people because of his stock market and was an idyllic figure to Warren Buffet. When the latter was so motivated by Graham’s investment principles, he decided to pay him a visit at his company named GEICO. The experience of meeting him will stay with him for the rest of his life as this decision gradually landed him up the entire GEICO Company through his corporation, Berkshire Hathaway.
During the initial period of 1952, his investments were limited only to a Texaco Station. He also began teaching night classes at the Omaha University. Finally, one day an opportunity knocked his door when Graham invited this young stockbroker to work with him.
Between 1950 and 1956, Buffet rose his capital up to $140,000 from $9,800. On 1st May 1956, he rounded up 7 limited partners, increasing $105,000 in the process. By the end of the year, he successfully launched the Buffet Associates, Ltd. and secured approximately a capital of $300,000 in total.
In the course of the next five years, his partnership steered to amazing heights and by 1962, the partnership had capital over $7.2 million. He had over 90 partners over the US and then decided to bring the entire partnership under the umbrella called Buffet Partnerships Ltd. Finally, the Buffet Partnership assets rose to 1156%. It pulled its biggest revolution in 1968 when a 59% gain in value and $104 million in assets were recorded.
On 10th May 1965, Warren became the director of the Berkshire Hathaway after gaining 49% of the common stock. In 1970, he named himself the Chairman of the Board of Berkshire Hathaway. In the next few years, he built up his rank as a rising insurer, fetching profits in millions. Today, Berkshire Hathaway is still an insurance giant without him.