19 July, 2013

Warren Buffet - What a life !! (A guest post by Abhay Venkitaraman)

(Pic courtesy : QuotesHDWallpapers.com Via Google)

 Warren Buffet

Warren Buffett is a multi-billionaire. He is an investor, philanthropist and a tycoon. Forbes has rated him as the 4th richest man in the world. He owns Berkshire Hathaway.

Warren Buffett was born on August 30th, 1930 in Omaha, Nebraska. His parents were Leila Buffett and the U.S representative Howard Buffett. He began his education at Rose Hill elementary school. In 1942, his father was elected to the first of 4 terms of in the Unites States congress. And after the Buffet family moved to Washington D.C, Warren finished elementary school. He then attended Alice Deal junior high school and then graduated from Woodrow Wilson high school in 1947. 

As a child, Warren had an interest in making and saving money. He went around selling chewing gum, Coca Cola and magazines. He also worked in his grandfather’s grocery store for some time. When he was in high school he was successful in making money by delivering newspapers, selling golf balls and stamps and detailing cars among many things. In 1945, he and a friend spent $25 to buy a pinball machine. They placed it in the local barber shop. Within months, they owned many machines in many different shops.

Warren also had an interest in the stock market. When he was 10, he went to New York and visited the New York stock exchange. When he was 11, he bought 3 shares of cities service and 3 for his sister. When he was in high school, he invested in a business owned by his father and bought a farm worked by a tenant farmer. Warren entered college in 1947 at the Wharton school of the University of Pennsylvania.  He studied at the college for 2 years until 1950 when he moved to the University of Nebraska-Lincoln.  At the university, he graduated with a bachelor of science in business administration. 

After Warren completed his undergraduate studies, he enrolled at Columbia Business School after finding out that Benjamin Graham who was the author of the intelligent investor (one of Warren’s favourite books for investing) and David Dodd who was a well known security analyst were teaching there. In 1951, Warren earned a Master of Science and economics from Columbia. Buffett also attended the New York Institute of Finance.

Warren Buffett was employed from 1951 to 1954 at Buffett-Falk and .Co, Omaha as an investment salesman, from 1954 to 1956 as a security analyst at Graham-Newman Corp., New York, from 1956 to 1969 at Buffett partnership Ltd, Omaha as an general partner and from 1970 to the present he works as the CEO of Berkshire-Hathaway. In 1950, Warren had made and saved nearly $9800. In 1952, Warren discovered that Graham was on the board of GEICO insurance. He took the train to Washington D.C on a Saturday and met Lorimer Davidson, GEICO’s vice president. The two discussed business insurance for hours. They ended up becoming lifelong friends. Davidson described Warren as an extraordinary man only after a few minutes. 

When Warren graduated from Columbia, he wanted to work on Wall Street but Benjamin Graham and warren’s father urged him not to. Warren came back to Omaha and worked as a stockbroker. During this time, he also went to the Dale Carnegie speaking course. Later, he started his own “Investment Principles” course at the University of Nebraska-Omaha. In 1956, Benjamin Graham retired. In 1952, Buffett married Susan Thompson at Dundee Presbyterian Church. In 1953, the couple had their first child, Susan Alice Buffett. In 1954. When Buffett joined Graham-Newman Corp, his starting salary was $12,000 a year. Working there was a very hard job. The same year, The Buffett’s had their 2nd child, Howard Graham Buffett. In 1956, Graham retired and closed his partnership. At that time, Warren had made and saved around $174,000 and started his own company, Buffett Partnership Ltd in Omaha. In 1957, Warren bought a 5-Bedroom stucco house in Omaha. Today it is still his residence. In 1958, the Buffett family had their 3rd child, Peter Andrew Buffett. In 1959, Buffett Partnerships Ltd grew to 6 partnerships. In 1960, Buffett Partnerships had 7 partnerships. In 1961, Buffett revealed that Sanborn Map Company accounted for 35% of the partnership’s assets.

In 1962, Buffett became a millionaire because of his partnerships. In January 1962, he had an excess of $7,178,500. Buffett had about 1,025,000. In 1962, he took over textile manufacturing firm Berkshire Hathaway. He bought shares from Seabury Stanton, who he later fired. In 1985, Berkshire Hathaway sold its last mill. In 1973, Warren acquired stock in the Washington post company. In 1979, Buffett began acquiring stock in ABC. Capital Cities announced it would purchase ABC on March, 18th 1985. Buffet helped finance the deal in return for 25% of the merged company. In 1987, Buffett purchased a 12% stake in Salomon Inc. This made it the largest shareholder. In 1988, Buffett bought stock in the Coca Cola Company. He purchased 7% of the company. Buffett became a billionaire in 1990. In 1998, he acquired general Re. In 2002, Warren became involved with Maurice.R.Greenberg at AIG. In 2005 the AIG board forced Greenberg to resign as Chairman and CEO after criticism from Elliot Spitzer, former attorney general of New York. AIG had to pay a fine of 1.6 billion. In June 2006, Buffett announced that he would give away 85% of his Berkshire holdings gradually in return for stocks. The largest contribution would go to the Bill and Melinda Gates foundation. In 2008, Buffett became the richest man in the world. He has already been dethroned.

On April 11th2012, Buffett was diagnosed with stage 1 prostate cancer during a routine test. He announced he would begin radiation treatment. On 15th September 2012, the radiation treatment was over. Buffett’s DNA report showed that his paternal ancestors come from North Scandinavia. His maternal ancestors come from Iberia (Spain) or Estonia.  In 1999, Warren was named the top manager of the 20th century by the Carson group. In 2007, Warren was listed by TIME magazine as one of the most influential people in the world. In 2011, Barack Obama awarded him the Presidential Medal of Freedom. Warren Buffet and Bill Gates were named the most influential global thinkers in Foreign Policy’s 2010 report. Warren has also financed a few politicians’ election campaigns like Barack Obama and Arnold Schwarzenegger. 

Warren Buffett also donates money. He and Bill Gates have started a group called “Giving Pledge” which encourages the wealthiest people in the world to donate money to poor people. Indian tribes and salmon fisherman have also sought to win support from Warren Buffet for a proposal to remove 4 hydroelectric dams from the Klamath River.

Warren Buffett is nearly at the end of his life. Many people would think, "Has my life been useful? Have I changed the world in any way ?"  Well, in my opinion, Warren Buffett has done all these things. He has been the richest man in the world, has made a small textile company a very successful conglomerate company, has started a charity and has even been awarded by the president of the U.S. I think Warren Buffet’s extraordinary life will be remembered even a century from now.

2 voice(s) said so:

sreedas vishnu said...


sreedas vishnu said...