Warren Buffett is often treated as god of investors. He is one of the most successful investors in the world. Warren Buffett is a American business magnate, and a investor. As of now April, 2020 his net worth is $100.6 Billion making him world’s seventh wealthiest person in the world. Currently, he is the CEO and chairman of Berkshire Hathaway. In this blog, we are going to see the success story of Warren Buffett.
Warren Edward Buffett was born on August 30, 1930 in Omaha, Nebraska. He is the second oldest child to his father Howard, a stock broker and his mother Leila. He has two sisters. At a very young age he developed a interest in business and stock market. While other children of his age were playing, he was making money. At eleven years old, he purchased three shares of Cities Service at $38 per each. Soon after buying it, it price fell down to $27. Then after, he waited for the stock to made $40 and sold it. He said that it was a mistake because the stock went unto $200. This taught him the principles of investing.
He began his career at Rose Hill elementary school. In 1942, he finished his elementary school and joined Deal junior high school. In 1947, when he was 17 years old, he graduated from Woodrow Wilson high school. After that, he got admitted into Wharton school of the University of Pennsylvania, after two years he transferred to University of Nebraska, complaining that he known better than his professors. Then he graduated from University of Nebraska with Bachelor of Science degree in business administration. Then, he applied to Harvard business school and was rejected because he was too young. Then he admitted to Columbia Business school of University of Columbia. In 1951, he graduated with Master of Science degree in economics.
In 1947, when he was 17 years old, he started a company Wilson coin operated machines with his friend Donald. The business was to buy a pinball machine at $25. The business makes $50 per week for Buffett and Donald. After a year they sold it for $1200. From 1951 to 1954, he worked as a investment salesman for Buffet-Falk. In 1954, Buffett got a job at Benjamin Graham’s partnership and his starting salary was $12,000 per year(around $116,000 today). In 1956 Benjamin Graham retired and closed his partnership. At that time Buffett’s saving reached to $176,000(around $1.66 million today). Then he started Buffett Partnership Limited. By 1960, He operated six partnership. In 1962, he became a millionaire because of his partnership of total 7,178,500 in which 1,025,000 belongs to him. In 1965, he started purchasing the stock of Berkshire Hathaway. By 1967, Buffett Partnership owns 59.5 shares of Berkshire Hathaway. By May 1990, he had became a Billionaire when Berkshire Hathaway started selling there shares of class A. Apart of Berkshire Hathaway, he had also have shares in Apple, Bank of America, Coco cola, American Express, and etc.
Being a Billionaire, he still lives in the same house, which he bought in 1957 for $31,500. In 2006, He announced that he will donate majority of his wealth to Bill and Melinda Gates foundation. In 2010, Warren Buffett and Bill Gates started giving pledge campaign to encourage extremely wealthy people to contribute majority of wealth for philanthropic causes. In that, Buffett donated 99 percent of wealth to philanthropic causes.