Warren Buffett Success Story - Life, Career, Failures

warren buffett success story

Warren Edward Buffett is an American business magnate, Investor, and Philanthropist. He is currently the Chairman and CEO of Berkshire Hathaway. He is considered one of the most successful investors in the world and has a net worth of over $102.1 billion as of December 2021, making him the tenth richest person in the world.

Warren Buffett Success Story

Beginning in the stock market business with his father at age 11, Warren Buffett filed his first income tax statement at age 13 and lost $35 of his cycle as expenses. . At age 15, in his final year of high school, Buffett and a colleague bought a used pinball machine for $25 and put it in a barbershop.

In a very short time, he had three machines at different locations, Buffett applied for admission to Harvard Business School at the age of 20, but was turned down. Warren Buffett then enrolled in Columbia Business School and from there Buffett learned the virtues of investing in the stock market.

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Journey to Becoming an Investor

Buffett showed interest in trading and investing at an early age. He was inspired by "One Thousand Ways to Make $1000", a book he borrowed from the Omaha Public Library at the age of seven.

Buffett used to think like an investor since childhood and the best example of this is –

  • In his first commercials, Buffett earned more than $175 by selling chewing gum, Coca-Cola bottles and weekly magazines door-to-door.
  • He worked in his grandfather's grocery store. While in high school, he made money by distributing newspapers, selling golf balls and tickets, and detailing cars, among other means.
  • On his first income tax return in 1944, Buffett deducted $35 for the use of his bicycle and watch on his paper route.
  • In 1945, as a high school student, Buffett and a friend spent $25 to buy a used pinball machine they had at a local barbershop. Within months, he had several machines in three different barber shops in Omaha. He sold the business later in the year to a war veteran for $1,200.


Warren Buffett's Investment Strategy

success story warren buffett

We can study long term investing by following the method of Warren Buffett. He has proven to be a disciplined follower of value principles that create wealth over the long term. 

  1. Buffett follows the Benjamin Graham school of value investing, investing in companies that are undervalued in terms of intrinsic value.
  2. Before investing in any company, Buffett sees how much is the profit of the company and how much are the debt and margin.
  3. The focus of the stock market is not only on supply and demand, but Buffett looks at the companies as a whole.
  4. Before investing, Buffett sees whether companies are public, how dependent they are on commodities, and how cheap they are.
  5. Invest in one stock as if you are buying the entire company. I always keep a close eye on Enterprise Value as it is the total value of the company. In other words, this is the price you will be paying for the company.
  6. Don't let fear and greed change your investment norms and values. Avoid being overwhelmed by external forces that influence your emotions. Never sell in a panic.

Personal Life

He married Susan Thompson in 1952. The couple had three children. Susan left him in 1977 to pursue a career and started living separately. They never divorced and remained legally married until Susan's death in 2004.

He married his longtime partner Astrid Menks in 2006; The couple had known each other since his first wife had left him. He was diagnosed with prostate cancer in April 2012 and has successfully completed his treatment.

He believes in giving back to the society and has pledged to donate a large part of his wealth, of which 83% has been given to the Bill & Melinda Gates Foundation.

Education

warren buffett success story

He started his education from Rose Hill Elementary School. In 1942, his father was elected to the United States Congress, and after moving with his family to Washington, D.C., Warren finished elementary school, attended Alice Deal Junior High School, and graduated from Woodrow Wilson High School in 1947. Did.

Buffett enrolled in 1947 to study at the Wharton School of the University of Pennsylvania. He stayed for two years, going to the University of Nebraska to complete his degree.

After being rejected by Harvard Business School, he received a master's degree in economics at Columbia University in 1951, where he studied under economist Benjamin Graham and furthered his education at the New York Institute of Finance.

Net Worth

According to the Bloomberg Billionaires Index, Buffett, chairman of Berkshire Hathaway Inc., is ranked 10th with a net worth of $104.1 Billion.

Success Secrets

  1. Buffett has maintained a relatively narrow research focus.
  2. He values ​​brand-name businesses over potentially high-reward dart throws.
  3. Trustworthy management teams are essential for investment purposes.
  4. Investing in dividend stocks has also played a big role in Buffett's long-term success.
  5. He allows his investment principles to play out.
  6. The Oracle of Omaha is surrounded by capable investors.

Warren Buffett Quotes

warren buffett success story

  • "Rule No. 1 is to never lose money. Rule No. 2 Rule No. 1 should never be forgotten."
  • "Someone is sitting in the shade today because someone planted a tree a long time ago."
  •   "If you're not willing to hold a stock for 10 years, don't even think about holding it for 10 minutes."
  • "Our favorite holding period is forever."
  • "Price is what you pay, value is what you get."
  •   "It's far better to buy a wonderful company at a fair price than a fair company at a fair price."
  • "The most important quality for an investor is temperament, not intelligence."
  • "The risk comes from not knowing what you are doing."
  • "Never invest in a business you don't understand."
  • "The most important investment you can make is in yourself."

_Warren Buffett

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