Warren Edward Buffett, who is called “the sage of Ohama”, is an American businessman and investor. He is widely considered as the most successful investor of 20th century. Buffett is the chairman and CEO of Berkshire Hathaway, which owns a lot of big companies like IBM, The Coca-Cola company, GEICO, … He is also ranked among the world’s wealthiest people and named as one of the most influential people in the world.
Warren Buffett was born on August 30, 1930 in Ohama, Nebraska, USA and he is the only son of U.S Representative Howard Buffett. Warren began his education at Rose Hill Elementary school in Ohama. In 1942, his father was elected to the first of for terms in the United States Congress so he must move with his family to Washington D.C. After that Buffett attended Alice Junior High School then graduated from Woodrow Wilson High School in 1947. At the same year, he entered Wharton School of the University of Pennsylvania.
He studied there for 2 years and joined the Alpha Sigma Phi fraternity and education. In the year of 1950, he transferred to the University of Nebraska – Lincoln, where he graduated with Bachelor of Science in business administration. Following the completion of his studies, he enrolled at Columbia Business School after finding that Benjamin Graham and David Dodd, who are Buffett’s idols, taught there. One year later, he earned a Master of Science in economics from Columbia.
When he was 13, he started his first job and he became a successful boy in making money. At the age of 20, Buffett had made and saved $9800. He wanted to work on Wall Street but both his father and Ben Graham urged him not to. After that, he offered to work for Graham for free, but Graham refused. In 1952, Buffett married Susan Thompson and they had the first child in the next year.
One year later, Buffett accepted a job at Benjamin Graham’s partnership. His starting salary was $12,000 a year. At same year the Buffetts had their second child, Howard Graham Buffett. In 1956, Benjamin Graham retired and closed his partnership. At that time Buffett’s personal savings were over $174,000 and he started Buffett Partnership in Omaha.
In 1957, Buffett had three partnerships operating the entire year. He purchased a five-bedroom house in Omaha, where he still lives, for $31,500. During the period of 2 years from 1958 to 1960, Buffett had 7 partnership operating. In 1962, Buffett became a millionaire because of his partnerships, which in January 1962 had an excess of $7,178,500, of which over $1,025,000 belonged to Buffett. Then he merged all partnerships into one partnership and began buying shares in Berkshire at $7.60 per share.
In 1965, Buffett took control of Berkshire Hathaway at the board meeting and named a new president, Ken Chace, to run the company. In 1973, Berkshire began to acquire stock in the Washington Post Company. After that, in 1977, Berkshire indirectly purchased the Buffalo Evening News for $32.5 million. 2 years later, Berkshire began the year trading at $775 per share, and ended at $1,310 so Buffett’s net worth reached $620 million, placing him on the Forbes 400 for the first time. In 1987, Berkshire Hathaway purchased a 12% stake in Salomon Inc, making it the largest shareholder.
In the next year Buffett began buying stock in Coca-Cola Company, eventually purchasing up to 7% of the company for $1.02 billion an it would turn out to be one of Berkshire’s most lucrative investments. Buffett became a billionaire when Berkshire Hathaway began selling class A shares on May 29, 1990, when the market closed at $7,175 a share. In 2002, Buffett entered in $11 billion worth of forward contracts to deliver U.S. dollars against other currencies. By April 2006, his total gain on these contracts was over $2 billion. In 2006, Buffett announced in June that he gradually would give away 85% of his Berkshire holdings to five foundations in annual gifts of stock, starting in July 2006.
The largest contribution would go to the Bill and Melinda Gates Foundation. 1 year later, in a letter to shareholders, Buffett announced that he was looking for a younger successor, or perhaps successors, to run his investment business. Then he had previously selected Lou Simpson, who runs investments at GEICO, to fill that role. However, Simpson is only six years younger than Buffett. In 2008, Buffett was ranked by Forbes as the richest person in the world, with a total net worth estimated at $62 billion.
Warren Buffet is inspiring because the way he lives, no wasting like other wealthy people. Besides that, he also give away 99 percent of his fortune for charity that make people really admire him.