Warren Buffet

Warren Buffet is an American buisnessman, investor and philantrophist. He was born on 30th August 1930 in Nebraska. He developed an interest in the business world and investing at an early age including in the stock market. He is the current CEO and chairman of Berkshire Hathaway, a very successful holding company. They hold shares of other companies to form a corporate group. Buffet is considered one of the most successful investors today with a net worth of over $100 billion. He is the 9th richest man in the world.

Buffett started his education at the Wharton School at the University of Pennsylvania before moving back to go to the University of Nebraska, where he received an undergraduate degree in business administration. Buffett later went to the Columbia Business School where he earned his graduate degree in economics. He began his career as an investment salesman in the early 1950s and formed Buffett Associates in 1956. Less than 10 years later, in 1965, he was in control of Berkshire Hathaway. Recently, Buffett began collaborating with Jeff Bezos and Jamie Dimon to develop a new healthcare company focused on employee healthcare.

Buffett follows the Benjamin Graham school of value investing. Value investors look for securities with prices that are unjustifiably low based on their intrinsic worth. There isn’t a universally accepted way to determine intrinsic worth, but it’s most often estimated by analyzing a company’s fundamentals. Like bargain hunters, the value investor searches for stocks believed to be undervalued by the market, or stocks that are valuable but not recognized by the majority of other buyers. He’s not really concerned with the activities of the stock market at all. Rather, he looks at each company as a whole, so he chooses stocks solely based on their overall potential as a company. Holding these stocks as a long-term play, Buffett doesn’t seek capital gain, but ownership in quality companies extremely capable of generating earnings. He isn’t concerned with whether the market will eventually recognize its worth when he invests. He is concerned with how well that company can make money as a business.

Before investing Buffet analyses the company’s performance, its debt, profit margins and whether its a public company. The answers to these questions help him make his investing decision. Buffett’s investing style is like the shopping style of a bargain hunter. It reflects a practical, down-to-earth attitude. Buffett maintains this attitude outside of work too. He doesn’t live in a huge house, he doesn’t collect cars and generally does not live a lavish life. This is what made him so successful.

Categories: News

Tagged as: