Background
Warren Buffett was born on August 30th, 1930, in Omaha, Nebraska, U.S. He is the second of three children and the only son of US representative Howard Buffett, dubbed the “Oracle of Omaha.” Buffett started attending Rose Hill Elementary School in Omaha in 1942, the same year that his father was elected to the US Congress for the first time. Warren completed his elementary school education in Washington, D.C., where Buffett and his family relocated. His American businessman and philanthropist widely considered the most successful investor of the 20th and early 21st centuries, having defied prevailing investment trends to amass a personal fortune of more than $100 billion. Even Buffett avoided extravagant spending and opposed laws and taxes that favored the wealthy over the middle or lower classes, even though his success with Berkshire Hathaway made him one of the richest men in the world.
After completing his education at Woodrow Wilson High School in 1947, Warren Buffett attended Alice Deal Junior High School and after graduating from the University of Nebraska (B.S., 1950), he studied under Benjamin Graham at the Columbia University School of Business (M.S., 1952). Buffett came to Omaha in 1956, making Berkshire Hathaway Inc., a textile manufacturer, his primary investment vehicle by assuming majority control of the company in 1965. Perhaps it was his father’s brokerage business that kindled this spark in the young Warren. According to his yearbook, he intended to become a “future stockbroker.” He had an interest in saving and earning money when he was younger. He went door-to-door, selling Coca-Cola, weekly magazines, and chewing gum. In addition, he worked at his grandfather’s supermarket. He delivered newspapers, sold golf balls, detailed automobiles, and sold stamps when he was in high school. He claimed a $35 deduction for his watch and bicycle, which he used for the paper route, on his first tax return. He and a friend purchased a pinball machine in 1945 while he was still in school, and they installed it in a barbershop. After a few months they had several machines in barbershops.
Even at the age of 10, he made a trip to the New York Stock Exchange because of his early interest in stocks. When he was eleven years old, he purchased three shares of Cities Service Preferred with his funds and gave his sister another three shares. He purchased a farm and invested in the business his father had while still in high school. He was 19 years old when he earned his Bachelor of Science in business administration in 1950. He studied at the New York Institute of Finance and graduated with a Master of Science in economics in 1951. And Buffett avoided extravagant spending and opposed laws and taxes that favored the wealthy over the middle or lower classes, even though his success with Berkshire Hathaway made him one of the richest men in the world.
Career Path
American philanthropist, investor, and businessman Warren Edward Buffett is the current chairman, CEO, and co-founder of Berkshire Hathaway. Due to his enormous investment success, Buffet is one of the most well-known investors in the world. With a $134 billion net worth as of March 2024, he ranked eighth among the world’s richest people. He made his first investment at the age of eleven, purchasing three $38 shares of Cities Service Preferred. He started his own company at the age of 13, working as a paperboy and selling his own horse racing tip sheet. Buffett worked as an analyst for Buffett-Falk & Company for three years and then spent two years working as an analyst at Graham-Newman Corp. At the age of 20, he had saved around $9,800 in 1950, or roughly $94,000 in current currency. He made friends with Lorimer Davidson of GEICO Insurance after meeting him, and Davidson had a significant influence on him. He returned to Omaha, where he worked as a stockbroker and lectured on investment ideas at Nebraska-Omaha. His attempt to purchase a Texaco petrol station failed, and he was employed at Graham-Newman Corp. With a personal savings of $174,000 by 1956, he founded the investment venture Buffett Venture Ltd. He operated three partnerships in 1957. His collaborations grew to seven by 1960.
Because of his collaborations, he had already amassed a million dollars and combined all of his partnerships in 1962. He purchased a sizable portion of Berkshire Hathaway, a company that manufactures textiles, to seize control of it. The billionaire’s worst gamble was purchasing the company since, at the very least, its textile division was on the verge of bankruptcy. But in reality, Warren turned the business into a financial organization. This is the origin of his well-known fund, Berkshire Hathaway. He was appointed chairman of the company in 1970. Due to his investments, he reached the Forbes 400 list in 1979 with a $620 million net worth.
Top Warren Buffet stocks by steps at the start of 2024, these were the top 10 stocks in Berkshire’s portfolio by number of shares:
- Apple (Bank of America (BAC), 1,03 billion
- Apple (AAPL), 905,6 million
- Coca-Cola (KO), 400 million
- Kraft Heinz (KHC), 325.6 million
- Occidental Petroleum (OXY), 248.1 million
- American Express (AXP), 151.6 million
- Chevron (CVX), 126.1 million
- Nu Holdings (NU), 107.1 million
- Paramount Global (PARA), 63.3 million
- Citigroup (C), 55.2 million
In terms of shares held, Apple is the second-most valuable stock in the portfolio, but it ranks first in terms of market value. Berkshire’s stake in Apple was worth an incredible $174.4 billion, representing 5.9% of the tech behemoth’s stock and more than half of Berkshire Hathaway’s stock portfolio, which exceeded $300 billion in total value at the start of 2024. Actually, because of AAPL’s superior earnings, returns, and management, you could consider Apple the quintessential Warren Buffett stock, and Berkshire Hathaway is a significant institutional owner. The majority of Buffett’s investments are dividend growers, considering Coca-Cola shares, whose dividends have increased continuously for over 50 years. He is also known as a “buy-and-hold investor,” hanging on to stocks for years and even decades.
Impact On The Economic World
Buffett’s dedication to charitable giving has significantly impacted the banking industry. Rich people are becoming more philanthropic as a result of his example, especially in the fields of banking and investing. His belief that riches should be used to improve society has inspired many investors and financiers to increase their charitable giving. Furthermore, by treating charitable investments with the same scrutiny as financial ones, his method has encouraged more calculated giving. This has contributed to the growth of impact investing, a method that seeks to produce both financial return and social or environmental impact, in addition to more successful charities.
Buffett’s humanitarian influence is just as great as his influence in the financial community. Through his contributions, promotion of The Giving Pledge, and role as an inspiration to others in the finance industry, Buffet is influencing the current state of philanthropy by encouraging generosity and strategic giving. In addition to being a legendary investor, Warren Buffett is a well-known philanthropist. He has pledged to give most of his money to the Bill & Melinda Gates Foundation and other charity organizations. He has donated billions of dollars to charity, proving his conviction that wealth distribution can enhance society. Buffett’s philanthropic philosophy is consistent with his investment tenets. He seeks out organizations capable of making a significant return on his donations, concentrating on areas where support can result in significant, long-lasting change. His enormous contributions to global health and education initiatives are evidence of his dedication to changing the world.
Conclusion
Warren Buffett is an American businessman and philanthropist, widely considered the most successful investor of the 20th and early 21st centuries. Buffett avoided extravagant spending and opposed laws and taxes that favored the wealthy over the middle class or lower classes, despite his success with Berkshire Hathaway, which made him one of the richest men in the world. He made his first investment at the age of eleven, purchasing three $38 shares of Cities Service Preferred. He started his own company at the age of 13, working as a paperboy and selling his horse racing tip sheet. Then Buffett worked as an analyst for Buffett-Falk & Company for three years and then spent two years working as an analyst at Graham-Newman Corp. Despite the success of the Buffett Partnership, in 1969, Buffet decided to close the business to concentrate on growing Berkshire Hathaway. Buffett joined Coca-Cola as a director in 1989 after Berkshire Hathaway took a sizeable stake in the company. He served as director until 2006. In addition, he held directorships at The Gillette Company, Graham Holdings Company, and Citigroup Global Markets Holdings.
References
Conerly, B. (2017, March 2). How Warren Buffett Makes The Economy Better Off– And Average People Too. Forbes. https://www.forbes.com/sites/billconerly/2017/03/02/how-warren-buffett-makes-the-economy-better-and-average-people-too/?sh=242d46824a4c
Dolan, B. (2023, September 7). Who Is Warren Buffett? Investopedia. https://www.investopedia.com/articles/financial-theory/08/buffetts-road-to-riches.asp
Narayanan, A. (2024, Maret 22). Warren Buffet Stocks: What’s Inside Berkshire Hathaway’s Portofolio? investors.
https://www.investors.com/research/warren-buffett-stocks
Stone, B. (2024, March 4). Three Timeless Investment Lessons From Warren Buffett’s Annual Letter. Forbes. https://www.forbes.com/sites/bill_stone/2024/03/03/three-timeless-investment-lessons-from-warren-buffetts-annual-letter/?sh=5fcee02945f1
Tikkanen, A. (2024). Warren Buffett | Biography, Books, Worth, & Facts | Britannica. In Encyclopædia Britannica. https://www.britannica.com/biography/Warren-Edward-Buffett
University of Edinburgh Business School. (2021, May 27). Warren Buffet | Known as the “Oracle of Omaha,” Warren Buffett is an investment guru and one of the richest and most respected businessmen in the world. Biography; Biography. https://www.biography.com/business-leaders/warren-buffett
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