When one thinks of the most successful investors in the world, Warren Buffett’s name undoubtedly comes to mind. Known as the “Oracle of Omaha,” Buffett has built a fortune by making shrewd investment decisions throughout his life. From humble beginnings to his position as one of the wealthiest individuals on the planet, Warren Buffett’s story is an inspiring one. Today, we’ll take a look at his early life, the journey that led him to becoming a self-made billionaire, and his current net worth.
Net Worth: $116 Billion
Salary: –
Date of Birth: Aug 30, 1930
Place of Birth: Omaha, Nebraska
Gender: Male
Profession: Businessman, Investor, Philanthropist
Warren Buffett Early Life
Warren Edward Buffett was born on August 30, 1930, in Omaha, Nebraska. His father, Howard Buffett, was a stockbroker who later became a four-term Republican Congressman. Buffett’s interest in finance started at a young age – as a child, he would spend his free time reading books on investing and visiting his father’s stock brokerage.
At just 11 years old, Buffett purchased his first shares of stock in Cities Service Preferred for $38 apiece. Unfortunately, the stock price soon dropped, but young Buffett held on until it eventually rebounded to $40 per share, making a modest profit. This early experience taught him a valuable lesson about patience and long-term investing that he would carry with him throughout his career.
After graduating from high school, Buffett enrolled at the Wharton School of the University of Pennsylvania but later transferred to the University of Nebraska-Lincoln, where he earned a Bachelor of Science in Business Administration. He went on to earn a Master of Science in Economics from Columbia Business School, studying under the legendary Benjamin Graham, who would become a significant influence in Buffett’s life.
Buffett’s investment philosophy was heavily influenced by Graham’s teachings, which emphasized the importance of finding undervalued stocks and holding onto them for the long term. After a brief stint at his father’s brokerage, he founded the Buffett Partnership Ltd. in 1956. This venture marked the beginning of Buffett’s journey as a professional investor.
Warren Buffett Personal Life
Despite his immense wealth, Warren Buffett is known for his frugal lifestyle and modest demeanor. He still resides in the same house in Omaha, Nebraska, that he purchased in 1958 for $31,500. Buffett is also well-known for his love of Cherry Coke and McDonald’s, often sharing anecdotes about his simple daily routine and inexpensive breakfast choices.
Buffett has been married twice in his life. His first marriage was to Susan Thompson in 1952, and together, they had three children: Susan, Howard, and Peter. The couple remained married until Susan’s death in 2004, although they had been living separately since the late 1970s. In 2006, Buffett married his longtime companion, Astrid Menks.
Warren Buffett Career
After learning valuable investment principles from Benjamin Graham, Warren Buffett’s career took off with the formation of the Buffett Partnership Ltd. in 1956. Over the next decade, he grew the partnership’s assets significantly, achieving annual returns of 29.5% on average.
Buffett’s investment in Berkshire Hathaway marked a turning point in his career. After gaining control of the company, he shifted its focus from textiles to insurance, using the capital from the insurance businesses to invest in other companies. This approach allowed Buffett to apply his value investing principles on a larger scale, acquiring stakes in well-known companies such as American Express, Coca-Cola, and IBM.
Throughout his career, Buffett has maintained a hands-off approach to the companies he invests in, allowing their management teams to run the businesses autonomously. This management style has earned him a reputation as a patient and long-term-focused investor who is not swayed by short-term market fluctuations.
In addition to his role as the Chairman and CEO of Berkshire Hathaway, Buffett has also served as a mentor to other prominent investors, such as Bill Ackman and Charlie Munger, who is Vice Chairman of Berkshire Hathaway. He is also known for his witty and insightful shareholder letters, which provide valuable lessons on investing and have become required reading for many in the financial world.
In recent years, Buffett has been slowly transitioning the management of Berkshire Hathaway to a new generation of leaders, including Ajit Jain, who oversees the insurance operations, and Greg Abel, who handles the non-insurance businesses. This shift reflects Buffett’s focus on ensuring the long-term success of Berkshire Hathaway and the continued application of his investment philosophy.
Warren Buffett Net Worth
Warren Buffett’s net worth has seen a steady rise throughout his career, thanks to his keen eye for value and his long-term investment philosophy. Today, his net worth was estimated to be around $116 billion, making him one of the wealthiest people in the world.
One of the most significant milestones in Buffett’s career was his investment in Berkshire Hathaway, a struggling textile company that he eventually transformed into a massive conglomerate. He started buying shares in the company in 1962, and by 1965, he had gained control of Berkshire Hathaway. Today, the company has holdings in a wide variety of industries, including insurance, energy, transportation, and consumer goods.
Berkshire Hathaway’s Class A shares have become some of the most expensive stocks in the world, trading at over $420,000 per share as of September 2021. This astronomical price is a testament to the company’s growth under Buffett’s leadership.
Buffett is also known for his philanthropic efforts. In 2006, he made headlines when he pledged to give away the majority of his fortune to charity. He has donated billions of dollars to various causes, including the Bill and Melinda Gates Foundation, which focuses on global health, education, and poverty alleviation.
