Life 4 Innovate

life for what you love to do

Warren Buffett November 21, 2008

Filed under: C.R.E.A.T.I.V.I.T.Y — thisislife @ 11:36 PM

<!– /* Font Definitions */ @font-face {font-family:”Cambria Math”; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:-1610611985 1107304683 0 0 159 0;} @font-face {font-family:Cambria; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:-1610611985 1073741899 0 0 159 0;} @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-1610611985 1073750139 0 0 159 0;} @font-face {font-family:Highlander; panose-1:0 0 0 0 0 0 0 0 0 0; mso-font-charset:0; mso-generic-font-family:auto; mso-font-pitch:variable; mso-font-signature:131 0 0 0 9 0;} @font-face {font-family:Japan; panose-1:2 11 0 0 0 0 0 0 0 0; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:3 0 0 0 1 0;} @font-face {font-family:Shanghai; panose-1:0 0 4 0 0 0 0 0 0 0; mso-font-charset:0; mso-generic-font-family:auto; mso-font-pitch:variable; mso-font-signature:3 0 0 0 1 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:””; margin-top:0in; margin-right:0in; margin-bottom:10.0pt; margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:”Calibri”,”sans-serif”; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:”Times New Roman”; mso-bidi-theme-font:minor-bidi;} h2 {mso-style-noshow:yes; mso-style-priority:9; mso-style-qformat:yes; mso-style-link:”Heading 2 Char”; mso-style-next:Normal; margin-top:10.0pt; margin-right:0in; margin-bottom:0in; margin-left:0in; margin-bottom:.0001pt; line-height:115%; mso-pagination:widow-orphan lines-together; page-break-after:avoid; mso-outline-level:2; font-size:13.0pt; font-family:”Cambria”,”serif”; mso-ascii-font-family:Cambria; mso-ascii-theme-font:major-latin; mso-fareast-font-family:”Times New Roman”; mso-fareast-theme-font:major-fareast; mso-hansi-font-family:Cambria; mso-hansi-theme-font:major-latin; mso-bidi-font-family:”Times New Roman”; mso-bidi-theme-font:major-bidi; color:#4F81BD; mso-themecolor:accent1; font-weight:bold;} p {mso-style-noshow:yes; mso-style-priority:99; mso-margin-top-alt:auto; margin-right:0in; mso-margin-bottom-alt:auto; margin-left:0in; mso-pagination:widow-orphan; font-size:12.0pt; font-family:”Times New Roman”,”serif”; mso-fareast-font-family:”Times New Roman”;} p.MsoNoSpacing, li.MsoNoSpacing, div.MsoNoSpacing {mso-style-priority:1; mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:””; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:”Calibri”,”sans-serif”; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:”Times New Roman”; mso-bidi-theme-font:minor-bidi;} span.Heading2Char {mso-style-name:”Heading 2 Char”; mso-style-noshow:yes; mso-style-priority:9; mso-style-unhide:no; mso-style-locked:yes; mso-style-link:”Heading 2″; mso-ansi-font-size:13.0pt; mso-bidi-font-size:13.0pt; font-family:”Cambria”,”serif”; mso-ascii-font-family:Cambria; mso-ascii-theme-font:major-latin; mso-fareast-font-family:”Times New Roman”; mso-fareast-theme-font:major-fareast; mso-hansi-font-family:Cambria; mso-hansi-theme-font:major-latin; mso-bidi-font-family:”Times New Roman”; mso-bidi-theme-font:major-bidi; color:#4F81BD; mso-themecolor:accent1; font-weight:bold;} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:”Times New Roman”; mso-bidi-theme-font:minor-bidi;} .MsoPapDefault {mso-style-type:export-only; margin-bottom:10.0pt; line-height:115%;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.0in 1.0in 1.0in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} –>
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:””;
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin-top:0in;
mso-para-margin-right:0in;
mso-para-margin-bottom:10.0pt;
mso-para-margin-left:0in;
line-height:115%;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:”Calibri”,”sans-serif”;
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:”Times New Roman”;
mso-fareast-theme-font:minor-fareast;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;}
Warren Buffett was born in 1930 in Omaha, Nebraska, the son of a stockbroker and Congressman, and has become probably the world’s most successful investor.

As a boy he delivered newspapers to make extra money and this probably sparked his interest in the media where he has made several successful investments including the Washington Post Company, a stock that has made him a lot of money and which he vows never to sell.

Imbued with a determination to make good and an entrepreneurial nature, Warren Buffett dabbled in several part time businesses but his destiny was chartered early in the piece when, after graduating from the University of Nebraska, he studied business at the Columbia Business School under Benjamin Graham. He tried to get a position with Graham’s firm and was at first unsuccessful. He finally got the job and learned a lot about stock investment from The Master.

Graham retired and Warren Buffett started a limited partnership in Omaha, using capital contributed by family and friends. The partnership was a great success and Buffett is said to have averaged an annual rate of return for the partnership in excess of 23 per cent, far in excess of the market.

Buying Berkshire Hathaway

Warren Buffett decided to wind up the partnership, returning the lucky investors their capital and their share of the profits, and bought an interest in Berkshire Hathaway. The smart ones did so. Buffett’s early days were not great. The company was in an industry facing real challenges from exports and high manufacturing costs. This was the start of Buffett’s interest in insurance and the rise to financial fame of both himself and Berkshire Hathaway. The insurance game is a hard one but under Buffett, the company has become not only a successful share investor, but a leading provider of insurance.

Under Warren Buffett and Munger, Berkshire Hathaway has become an investment giant that wholly owns a number of successful companies that include:

Geico Corporation

Nebraska Furniture Mart

Sees Candy Shops

Warren Buffett is just as hard to define as the investor. He projects a homespun frugality but one suspects that he plays his personality as close to the chest as he does his investment secrets. He always claims that it is his partner, Charlie Munger, who keeps his feet planted firmly in the ground.

Warren Buffett has become a legend and is generally ranked, along with his mentor, Benjamin Graham, first in a stellar cast of investors that includes Peter Lynch, John Neff, and Philip Fisher.

Last year Warren Buffett stunned us all with his “big” gift of $31 billion to the Bill & Melinda Gates Foundation. His generosity will make a huge difference in the lives of people around the world, and his example will be talked about for decades.

He’s also a fantastic teacher. Over the years, Warren Buffett has talked to thousands of college students (usually in informal sessions with high sense of humor and high ethical standard). Warren loves those chats. I think he has more fun swapping ideas with students than he does meeting Wall Street managers. Great teachers are also great learners and Warren is no exception. For instance, although he’s famous for being a natural public speaker, it didn’t come easily to him.

He’s never afraid to admit what he doesn’t know, and he loves to learn. Warren Buffett, now 76, has set an example for a whole generation of students, from budding business leaders in Nebraska to a couple of philanthropists in Seattle. We’re all lucky to have him.

Advertisements
 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s