Warren Buffett is more than just a billionaire investor—he is a symbol of patience, discipline, and long-term success. His journey from a small-town boy in Omaha to becoming one of the wealthiest and slowly he become the mastermind of stock market and investment
1. BIOGRAPHY OF :WARREN BUFFETT
Warren Edward Buffett was born on August 30, 1930, in Omaha, Nebraska, during the Great Depression. His father, Howard Buffett, was a stockbroker and later became a U.S. Congressman. His mother, Leila Stahl Buffett, was a homemaker.
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From a young age, Buffett showed an interest in numbers, money, and business. Some early signs of his financial genius:
- At 6 years old, he bought packs of Coca-Cola for 25 cents and sold each bottle for a profit.
- Age 10, he visited the New York Stock Exchange and was fascinated by the stock market.
- and at 11, he made his first stock purchase—three shares of Cities Service Preferred at $38 each. The stock dropped to $27 but later rose to $40, and he sold it. However, the stock later soared to $200, teaching him the importance of long-term investing.
- At 13, he was already running multiple small businesses, including a newspaper delivery route. He even filed his first income tax return and claimed a $35 deduction for his bicycle.
Education & Early Mentors
Buffett was a brilliant student, but he disliked formal education.
- He attended the University of Pennsylvania’s Wharton School at 17 but later transferred to the University of Nebraska, graduating with a business degree at 19 years old.
- He wanted to attend Harvard Business School but was rejected.
- Instead, he enrolled at Columbia Business School, where he met his most important mentor, Benjamin Graham—the father of value investing.
- Graham’s book, “The Intelligent Investor,” had a huge impact on Buffett’s thinking.
2. Early Career & Buffett Partnership
After graduating in 1951, Buffett worked under Graham at his investment firm, Graham-Newman Corp.
- He learned value investing, which focused on buying stocks that were undervalued compared to their intrinsic value.
- Graham retired in 1956, and Buffett returned to Omaha.
- That same year, he started his own investment firm, Buffett Partnership Ltd., with only $105,000 from friends and family.
- He quickly grew the fund by following Graham’s principles but added his own twist—he focused on great businesses, not just cheap stocks.
By 1962, he was a millionaire.
3. The Birth of Berkshire Hathaway
Buffett’s biggest move came in 1965 when he took control of Berkshire Hathaway, a struggling textile company.
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- Initially, he wanted to flip it for a profit, but he saw an opportunity to transform it.
- He shifted the company’s focus from textiles to investing in high-quality businesses.
- Over time, Berkshire Hathaway became a holding company for some of the most successful businesses in the world.
4. Buffett’s Biggest Investments
Buffett is famous for his long-term, high-value investments. Some of his best:
Coca-Cola (1988-Present)
- Buffett loves Coke—not just as an investment but as a daily drink (he drinks 5 cans a day!).
- He bought a $1 billion stake in Coca-Cola in 1988, and it remains one of Berkshire’s top holdings today.
Apple (2016-Present)
- Buffett was initially skeptical of tech stocks but eventually bought Apple, now Berkshire’s biggest holding.
- He considers Apple more of a consumer brand than a tech company, which fits his strategy.
Geico Insurance
- Buffett loved the insurance business because it provides float money—cash that can be reinvested before claims are paid.
- He started investing in Geico in 1951 and later bought the entire company.
Other Notable Investments
- American Express – Buffett bought in after the 1960s “Salad Oil Scandal.”
- Bank of America – A major investment during the 2008 financial crisis.
- BNSF Railway – One of the largest railroad acquisitions ever.
5. Buffett’s Investment Philosophy
Buffett follows four key principles when investing:
1. Buy Great Businesses, Not Just Stocks
- He focuses on companies with strong brands, competitive advantages, and loyal customers.
2. Long-Term Thinking
- Unlike traders, Buffett rarely sells. He once said: “Our favorite holding period is forever.”
3. Value Over Price
- He looks for undervalued stocks with strong fundamentals.
4. Trust in Leadership
- He invests in companies with great managers and lets them run the business.
6. The Humble Billionaire & His Lifestyle
Despite being one of the world’s richest men (net worth: over $100 billion), Buffett lives a simple life:
- He still lives in the same house he bought in Omaha in 1958 for $31,500.
- warren drives an average car and doesn’t own a yacht or a private jet (though Berkshire owns NetJets).
- buffett eats McDonald’s breakfasts every day, choosing meals based on the stock market’s performance!
- He never uses a smartphone—he prefers his old flip phone.
Buffett believes happiness doesn’t come from money but from doing what he loves.
7. Buffett’s Philanthropy & Legacy
Buffett is one of the greatest philanthropists ever:
- In 2006, he pledged to give away 99% of his wealth to charity.
- He has donated over $50 billion so far.
- In 2010, he co-founded The Giving Pledge with Bill Gates, encouraging billionaires to donate most of their wealth.
His goal is to help society, not just grow his fortune.
8. Lessons from Warren Buffett
Here are some key takeaways from Buffett’s life and success:
1. Start Early
- Buffett started investing at 11 years old. He believes time is the biggest advantage in investing.
2. Keep It Simple
- Buffett avoids complex businesses and sticks to what he understands.
3. Be Patient
- He waits for the right investment and holds it for decades.
4. Invest in Yourself
- Buffett says the best investment you can make is in your own knowledge and skills.
5. Give Back
- Money alone doesn’t define success. Buffett’s goal is to improve the world with his wealth.
Final Thoughts
Warren Buffett’s story is a masterclass in patience, discipline, and smart decision-making. From a small-town boy to a global investing legend, he has built one of the most successful financial empires in history—all while staying humble and generous
