Warren Edward Buffett, born August 30, 1930, is an American investor, business tycoon, and philanthropist, who is the chairman and CEO of Berkshire Hathaway. He is considered one of the most successful investors in the world.
He is noted for his adherence to value investing and for his personal frugality despite his immense wealth.
SEEDS OF A WIZ
Buffett displayed an interest in business and investing at a young age. He was inspired by a book he borrowed from the Omaha public library at the age of seven, One Thousand Ways to Make $1000.
Much of Buffett's early childhood years were enlivened with entrepreneurial ventures. In one of his first business ventures, Buffett sold chewing gum, Coca-Cola bottles, and weekly magazines door to door.
In 1945, as a high school sophomore, Buffett and a friend spent $25 to purchase a used pinball machine, which they placed in the local barber shop. Within months, they owned several machines in three different barber shops across Omaha.
WOOING THE STOCK MARKET
The basic ideas of investing are to look at stocks as business, use the market's fluctuations to your advantage, and seek a margin of safety. That's what Ben Graham taught us. A hundred years from now they will still be the cornerstones of investing. — Warren Buffett.
Buffett's interest in the stock market and investing dated to schoolboy days he spent in the customers' lounge of a regional stock brokerage near his father's own brokerage office. On a trip to New York City at age ten, he made a point to visit the New York Stock Exchange. At 11, he bought three shares of Cities Service Preferred for himself, and three for his philanthropic sister Doris Buffett.
Buffett has written several times of his belief that, in a market economy, the rich earn outsized rewards for their talents. His children will not inherit a significant proportion of his wealth. He once commented, "I want to give my kids just enough so that they would feel that they could do anything, but not so much that they would feel like doing nothing".
WEALTH AND PHILANTHROPY.
On December 9, 2010, Buffett, Bill Gates, and Facebook CEO Mark Zuckerberg signed a promise they called the "Gates-Buffett Giving Pledge", in which they promise to donate to charity at least half of their wealth, and invite other wealthy people to follow suit.
PEARLS OF WISDOM
Buffett has been critical of gold as an investment. In a 1998 address at Harvard, Buffett said:
"It gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."
In May 2012, Buffett said he had avoided buying stock in new social media companies such as Facebook and Google because it is hard to estimate future value. He also stated that initial public offering (IPO) of stock are almost always bad investments. Investors should be looking to companies that will have good value in ten years.
FRUGAL LIVING
Despite his roughly $74 billion net worth, the second-wealthiest man in the world enjoys a life with simple taste, frugal living and generous philanthropy.
The billionaire doesn’t describe himself as frugal, just a man with simple tastes.
“I buy everything I want in life,” he told People Magazine recently. “Would 10 homes make me more happy? Possessions possess you at a point. I don’t like a $100 meal as well as a hamburger from McDonald’s.”
SOME FUN FACTS ABOUT WARREN BUFFETT
Warren Buffett lives in the same house he bought in 1958. He starts his day with a cheap breakfast and drives the same car for years.
Buffett enjoys affordable hobbies. He is a self-proclaimed bridge addict. When he's not counting cards or investing a ton of money, you might also find him strumming his ukulele and singing.
Buffett treats his friends well, but not extravagantly. For example, he drives personally to the airport to pick Gates up whenever he’s in town, calls frequently and sends news clippings by mail that he thinks Gates and his wife will enjoy.
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