I. His childhood
The 30th august 1930, Warren Edward Buffett was born in Omaha, Nebraska. His father Howard buffet was a stockbroker and United States representative who lost a most part of his money during the 1929 international crisis. His mother, Leila Buffet, was depressive. Warren began to read the reports of his father, when he was 8.
At 9, he already knew how to quote the rate of WallStreet. And the same year, he created a business of lemonade, and after a business of newspapers. So he displayed an amazing aptitude for both money and business at a very early age.
At 11, he began to work with his grandfather in order to make his first stock purchase which he bought 38.25$, and sold 40$. It has been the first of a very long list of paying investment. However, few years later,the stock rockets to 200$. It taught him the importance of investing in good companies for the long term.
At 14, he and one of his friends installed some pinball machines in barbershop. He entered in the top 20 of his class with this company. It confirms that he was a very good student. So he easily has been graduated from the Woodrow Wilson High School in the University of Nebraska-Lincoln atthe age of 17.
II. Education and his beginnings in business world.
At 17, he went to the Wharton school, a very prestigious university. But when he entered in this school, he had already read the hundreds of books of the program. After 3 years in this school Buffett applied for admission to Harvard Business School, but was turned down. Buffett went to Columbia Business School after learningthat Benjamin Graham and David Dodd, two well-known securities analysts, taught there. He thought Benjamin Graham was the best mentor he could find. That’s why he went to Columbia. In 1951, when he was 21, he obtained a Master’s degree of economics. Warren’s teacher was so happy of his student that he enrolled him a few years after he left the University. At the age of 22 years old Warren Buffettmarried Susan Thompson. And in 1953, Susan and Warren Buffett had their first child, Susan Alice Buffett.
In 1954, Benjamin Graham, who was his teacher at Columbia University, offered Buffett a job with a starting salary of $12,000 a year.
At the age of 26, his personal savings were over $140,000 and he bought his house in Omaha, Nebraska for $31,500.
In 1962, Buffett became a millionaire becauseBuffett's partnerships had in excess of $7,178,500 of which over $1,025,000 belonged to him.
The same year Buffett discovered a textile manufacturing firm, Berkshire Hathaway. Buffett's partnerships began purchasing shares at $7.60 per share in this company since he was thinking that the Berkshire Hathaway was a strong company.
In 1965, Buffett took control of the Berkshire Hathaway, and heconverts it as an investment company. Buffett bought 7 percent of the Coca-Cola Company for $1.02 billion. That is the most lucrative investment of the Berkshire Hathaway, and which he still holds.
In 1967, Berkshire paid out its first and only dividend of 10 cents.
III.Golden Age (since 1969)
In 1969, Warren Buffet begins to transform Berkshire Hathaway- a textile company- in a financialcompany. The same year he began to write the now-famous letters to shareholders.
In 1973, Buffet tries and begins to acquire the Washington Post Company. Six years later, he repeats with ABC. The Berkshire Hathaway share was valued $775 in January 1979 and more than $1300 at the end of the year, thanks to the very profitable investments of Warren Buffett. For the first time he is placed in theForbes 400 (which lists the richest people in the world). He approximately owns $10 billion.
Berkshire Hathaway buys 12% stock in Salomon Inc in 1987 and becomes the largest shareholder. One year later Buffet begins to purchase stock in Coca-Cola Company (7%).
In 1999 Warren Buffett is named “the top money manager of the twentieth century by the Carson Group.
When he is 72 years old, in 2002,...
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