Story of the week by Stratzy
Oracle of Ohama
In the current market scenario where everyone is panicking and ready to sell all that they have got, we have to remember lessons from Warren Buffet. Many of you might have already read or heard about the life of Warren Buffett but today we are going to repeat all that as it is our call of duty to revise all his patient lessons.
Warren Buffett was born on August 30th, 1930, in Omaha, Nebraska. His father was a stockbroker who later became a politician. Since boyhood, Warren possessed remarkable analytical abilities, and he eventually developed a keen interest in the financial market. He made a 5-cent profit on each pack of Coca-Cola he sold at the age of six, after purchasing them from his Grandfather for 25 cents. Buffett began selling Coca-cola, chewing gum, and monthly magazines door to door while still in school, and his business ventures were highly successful. He gradually expanded his business to include goofballs, stamps, and various other items.
Buffett and a friend bought a used pinball machine for $25 and put it in a barbershop during his high school years. He quickly amassed a large number of machines at several barber businesses.
His life was filled with opportunities to learn. He first visited the New York Stock Exchange when he was ten years old, during a trip to New York City. After a year, he experienced a life-changing event. He bought some Cities Services Preferred shares for $38, but when they dropped to $27 per, he quickly sold them for $40. Prices increased to $200 after a few days. He grasped the importance of patience and long-term investment at that point.
He earned his B.S. in Economics from the University of Nebraska Lincoln when he was 19 years old, and his M.S. in Economics from Columbia Business School in 1951, when he enrolled with the hopes of being taught by two renowned securities analysts, Benjamin Graham and David Dodd. His favorite book was Benjamin Graham's The Intelligent Investor, which he read cover to cover.
From 1951 to 1955, he worked as an Investment Salesman at Buffett-Falk & Co. in Omaha, as a Securities Analyst at Graham-Newman Corp. in New York from 1954 to 1956, as a General Partner at Buffett Partnership, Ltd. in Omaha from 1956 to 1969, and as Chairman and CEO of Berkshire Hathaway Inc. in Omaha since 1970.
He became a billionaire in 1990 when he began selling Berkshire Hathaway Class share A.
He was the third richest man on the planet, according to Forbes 2012, with a net worth of $44 billion. His charitable contributions total more than $20 billion.