Warren Buffett

Warren Buffett

Biography

 Warren Edward Buffett was born on August 30, 1930 in Omaha, which is located in the state of Nebraska. Buffett's father Howard (Howard Buffett) was a successful stock trader. In all, Buffett had four children, and Warren was the only boy among them. Even as a little boy, he found an outstanding memory for numbers, the first time to remember the number of people in various American cities. Interestingly, the grandfather of Warren held in Omaha grocery store, where he worked the current companion Buffett Charlie Munger .

 His first young Buffett made a deal at the age of six. In the shop of his grandfather, he bought six cans of pocket money "Coca-Cola" for 25 cents piece and sold them on 50 cents to his family. The work attracted the father of Warren, and at age 11 he decided to try his hand at speculation. Teaming up with her older sister Doris (Doris) and taking the money borrowed from his father, he bought three shares of Cities Service Preferred at $ 38. Soon, the price dropped to $ 27 and then rose to $ 40. At that point Warren had sold shares to lock in profits and net of commissions earned $ 5. But just a few days the price of Cities Service exceeded $ 200 per share. Buffett still remembers that his mistake, adding that because life has taught him a basic principle of investing - "patience rewards."

Business story

Warren Buffett (Warren Buffett), to convince the majority of his colleagues - the most successful investor, who made their capital by investing in stocks. However, the word "luck" is probably not the most appropriate. In selecting projects for investment Buffett holds only fundamental analysis - he chooses to share financial and operational performance of public companies. He does not buy common shares, and a successful business that is behind these securities. In this case, Buffett prefers those assets, which, in his opinion, at the time of purchase undervalued. Of course, Buffett is a long-term investor - on average, it holds the shares for 10 years. And according to him, he does not care what happens to the stock exchange after he bought them. By his own admission, it will be a good stock to hold for as long as they are able to make a profit. Sell ​​before the time he does not, and this may reduce the number of financial indicators Berkshire Hathaway - Buffett thinks so himself.

 "The main secret of successful investing - said Buffett, nicknamed the» Oracle of Omaha «for his investment flair - chooses good stocks at the right time and keep them for as long as these stocks are good." The best known and most frequently cited illustration of the success of the strategy Buffett is the fact that $ 10,000 invested in his company in 1965, now would bring about $ 30 million in the same $ 10 thousand invested in the S & P 500, now would cost only $ 500 thousand . Buffett himself steadily occupies second place in the world's richest people compiled by Forbes. His fortune is estimated at $ 42 billion. However, according to Forbes magazine in 2008, Buffett became the richest man in the world with a fortune of $ 62 billion.

Conclusion

 Among the companies whose share accounts for the largest share of the 47-billion-dollar assets of Berkshire as of December 31, 2005 - American Express, Ameriprise Financial, Anheuser-Busch, Coca-Cola, M & T Bank, Moody's, PetroChina, Procter & Gamble, Wal-Mart, Washington Post, Wells Fargo, White Mountains Ins. These data are contained in the annual report for Berkshire Hathaway in 2005. According to 2005 Berkshire Hathaway profit increased by 16.6% to $ 8.5 billion, or $ 5,538 per share. In 2004, earnings were $ 7.31 billion, or $ 4,753 per share. Last year it was initiated five transactions for acquisitions. Book value of Berkshire shares rose 6.4%. Berkshire Hathaway shares have not been crushed 41 years.
 Warren Buffett - a very ordinary person and many experts believe that the successes the company Berkshire Hathaway must, above all, his personal charisma and ability. What will happen to the company when Buffett decides to retire? No one knows. Buffett, according to him, had already chosen a successor, rather, two successors, but their names are kept secret. Will the latest "investment decision" Buffett faithful same as the previous?