Warren Buffett - biography, will and other details. Warren Buffett Family Values: How to Raise Children Properly What kind of team does Warren Buffett have

22.11.2014 8 162 0 Reading time: 20 min.

Who is Warren Buffett?

Now investor Warren Buffett owns a fortune of about $ 66 billion and in 2014 takes 4th place in the world ranking of the richest people in the world according to Forbes (in 2008 he occupied the first position in this ranking). Buffett, 84, is the chairman and chief executive of Berkshire Hathaway, a large textile corporation, in which he acquired a controlling stake back in 1965.

Warren Buffett is in friendly and even partnership relations with the first person of Forbes - Bill Gates and is known as the largest philanthropist in the history of the world. He has donated more than $40 billion in total.

Of course, he did not come to all this at once. Next is the biography and success story of Warren Buffett.

Childhood and youth of Warren Buffett

Warren Edward Buffett was born in 1930 in a small town in the US state of Nebraska, his father was a politician and stock trader. From early childhood, he showed high rates of development: even before school he learned to read and count well, quickly assimilated any information and showed high erudition for his age. The people around him considered Buffett a child prodigy.

Warren Buffett got his first financial experience at the age of six. One day he went to a store owned by his grandfather, bought a package of 6 bottles of Coca-Cola there for 25 cents, and then resold each of them separately for 5 cents, helping out 30 cents for the whole lot and earning 5 cents in net profit.

Already at the age of 11, Warren Buffett got his first experience of stock trading and transactions with securities. Since his father was a stockbroker, Buffett had access to stock information, watched stock prices change, and one day decided to make his first trade. He purchased 2 shares of Cities Service (one for himself and one for his older sister) for about $38 each and began to watch their value move further. After that, the price of these securities began to fall and soon dropped to $27. Warren Buffett was nervous, but he didn't take any action. Then the shares began to rise in price again, and when their value reached $40 per share, he sold them, thereby earning about $4 of speculative profit.

However, just a few days later, the value of Cities Service shares skyrocketed to $202, and Warren Buffett realized that if he had endured these few days, he could have earned not $4, but more than $300. Then he did not do it, because he was ready to risk his money, but he did not want to risk his sister's money. In the future, already being a rich and successful person, investor Warren Buffett often recalled this case as the biggest mistake in his investment practice. But it was from her that he learned the most important lesson, which in the future helped him get rich:

You can’t panic when prices fall, if you are confident in your forecast, you need to focus on long-term rather than short-term investments.

After this incident, Warren Buffett moved away from stock trading for a while and began to earn money by working as a press peddler. Moreover, he developed his own special optimized route, which allowed him to ride a bicycle around a larger number of addressees during working hours, which means to earn more.

At the age of 13, Warren Buffett paid income tax for the first time, filled out and submitted a declaration to the tax authorities, in which he indicated all his cash receipts and deducted the cost of purchasing a watch and a bicycle, justifying this by the fact that these costs are directly related to his earnings.

Soon, Warren Buffett's salary rose to the level of his boss's salary, and later doubled it. Buffett saved the money he earned by creating.

When the amount of savings amounted to $ 1,500, Warren Buffett purchased a land plot with this money and leased it to local farmers, thereby creating his first.

Further, the sphere of interests of Warren switched to the field of gambling. He began to buy broken old pinball machines very cheaply, repair them through workshops, and install them in busy waiting areas, in particular in hairdressers. Thus, already in his youth, Warren Buffett organized a business that brought him about $ 600 in net income per month. It was on these machines that he earned his first $10,000.

Parents sent Buffett to study business at one of the prestigious institutions in Pennsylvania, but from the very beginning he was not interested there: he already knew the curriculum better than his teachers, moreover, from a practical rather than a theoretical point of view. Therefore, a year later, Warren Buffett left this university and returned to his native state, where he organized the printing business of publishing newspapers, first taking the position of head of the delivery department, and then becoming a co-owner of the enterprise. In parallel with doing business, he studied at the university of his state, which he later graduated from.

How did Warren Buffett become an investor?

A successful business brought Warren good money, he again had savings, which he decided to increase by returning to. Soon, his father entrusted him with management and family capital, so Buffett began to increase not only his own savings on the stock market, but also the finances of his parents.

After graduating from his first university at the age of 20, Buffett decided to continue his education and applied for admission to Harvard, but they were not accepted due to being too young. As a result, Buffett entered Washington's Columbia University, where at that time one of the "sharks of the stock market" - Benjamin Graham - taught. In the 1920s, when many perceived stock trading as a casino game, Graham perceived it as a complex science. He carefully analyzed the market, studied the financial statements of companies and predicted quotes, which allowed him to earn good money on the stock market and become a popular stock trader.

However, after listening to Graham's lectures, Warren Buffett drew completely opposite conclusions from them: he was sure that it was not the financial statements that were more important, but the real position of the business on the market, its prospects. Buffett openly debated with Graham, and as a result became the only student who received the highest mark from the guru. However, they were in constant confrontation: Graham did not like the "upstart" Buffett, and did not recommend him to engage in stock trading. Buffett, in spite of everything, after graduating from the university, asked to work at the Graham Foundation, and even said that he agreed to work for him for free, but was refused.

Warren Buffett got married and got a job teaching at one of the local universities, and after a while Graham called him, saying that he had changed his mind and was ready to hire him. Warren Buffett worked for Graham for 6 years, proving in practice that his principles of investing work better than those of Graham: during this period he earned more for the company than it has earned during its entire existence. At the same time, Buffett created a total of 140 thousand dollars and decided to open his own business on it.

So in 1957, investor Warren Buffett formed Buffett Associates, his first investment company. Several entrepreneurs, seeing Buffett's ability to, entrusted him with their capital in management. The initial capital of the company was 105 thousand dollars, and after six months Warren Buffett was able to increase it 3 times.

The main principle of investing, which was guided by investor Warren Buffett, was the long-term investment of capital in companies that were led by the best, in his opinion, managers. It was in such companies that he saw the maximum prospects for development, which meant that their shares would grow well in price. Buffett did not engage in short-term speculation, when asked about the best period to sell stocks, he answered: "Never."

This strategy brought Buffett very good results. During the first 5 years of Buffett Associates' activity, the shares in which the company's capital was invested rose in price by more than 250%, and during the same period rose by only 74%. And over the next 5 years, Warren Buffett's shares rose by more than 1150%, while the Dow Jones index - by only 122%.

12 years later, in 1969, the value of the partnership's assets amounted to $102 million (I remind you that the initial capital was $105,000). At this point, Warren Buffett closed the company and sold off its assets, but in the process acquired a new textile company, Berkshire Hathaway. At that moment, this company was in a deep crisis, but Buffett, starting in 1965, gradually bought back its shares at a very low price, until he became the owner of a controlling stake.

However, investor Warren Buffett did not further develop the company in his core area, and directed all of its income to further operations with securities on the stock market. At that time, American legislation introduced significant tax breaks for insurance companies, and Buffett immediately took advantage of this. Seeing great prospects for the development of the insurance business, he bought out 5 large insurance companies and "hit the bull's-eye": the value of the companies grew very quickly, and when Buffett went into his 50s, his fortune was already estimated at $ 28 billion.

Investor Warren Buffett preferred to invest only in those companies whose products he personally liked. So, for example, he bought shares:

• the company behind the favorite drink Coca-cola;
• shaving company Gillette, whose products he used to shave every morning;
• his favorite newspaper, The Washington Post, which he looked through daily;
• the Walt Disney film company, whose cartoons he was very fond of, etc.

Shares of companies during their stay in the assets of Warren Buffett increased in price by 10-100 times.

Interestingly, Buffett invested virtually nothing in high-tech stocks, which also rose in value very well. He explained this by the fact that he did not even have a computer. By the way, Warren Buffett never even uses a calculator, because he is able to perform all the necessary mathematical calculations in his mind.

Warren Buffett: interesting facts

It is noteworthy that investor Warren Buffett has never in his life afforded the purchase of any luxury items. Even now, being a billionaire and one of the richest people on the planet, he lives in an old house in his hometown of Omaha and drives simple cars, for example, an old Honda model, which he bought from his hands about 20 years ago for $ 700. However, he has one weakness - private jets: in his life he bought several of them.

Warren Buffett often eats at fast food restaurants, and he liked one of the fast food chains so much that he bought it. And once a year, he arranges a charity auction: anyone can compete to get the right to have breakfast with a famous global investor. The maximum amount that was raised at this auction in 2012 was $3.5 million. All proceeds traditionally go to charity.

Warren Buffett has always adhered to the main principle: money should not be spent, but invested.

Investor Warren Buffett has written several books on investing, many of his expressions have become catchphrases. And he himself repeatedly became a character in the works of other authors. The most famous book about Buffett is perhaps Alice Schroeder's Warren Buffett is the World's Best Investor.

Buffett has a good sense of humor and always likes to joke, including on himself.

The famous investor Warren Buffett is also known as the world's largest philanthropist. in 2010, he donated exactly half of his fortune (about $37 billion) to five charitable foundations. This act went down in history as the largest act of charity in world history.

Warren Buffett, as a successful investor would expect, has on several occasions predicted significant price movements in world markets with great accuracy. So, in 2003, he predicted the fall of the dollar and transferred his capital to 13 other currencies, and indeed, it happened. He also predicted what happened in recent years and the fall in prices for American real estate.

However, there were mistakes in his career as an investor. For example, just recently, in 2014, Warren Buffett lost about $ 2 billion in shares of the British retail company Tesco in a few days, before that he suffered significant losses on investments in IBM shares. Perhaps such miscalculations are related to the age of the investor, after all, in principle, not everyone will be able to invest in their ninth decade.

It was a brief biography and success story of Warren Buffett, an investor with a worldwide reputation. I think that in this story everyone can highlight something important for themselves, after all, Warren Buffett is a person from whom you can really learn a lot. The most important rules that he followed in the conduct of investment activities, I highlighted in a separate article:.

Stay on the Financial genius, improve your financial literacy, learn the latest ways to make money and invest, learn how to use personal finances wisely and effectively. See you in new posts!

Estimate:

By pushing Zara owner Amancio Ortega to take second place. Buffett is the largest philanthropist and one of the most successful investors in history. His company Berkshire Hathaway has stakes in 60 companies in various industries, including Geico and Duracell. The investor continues to successfully develop his business and increased revenue in 2016 by $15 billion, and now owns a total of $75.6 billion.

Warren Buffett's life had its ups and downs, like all people, but they strengthened his flair, which earned him such nicknames as "The Oracle of Omaho" and "The Seer." We present to your attention 15 facts about the famous billionaire that will surprise you.

1 He bought his first shares at the age of 11

While other kids were playing games, 11-year-old Warren tried his hand at the stock exchange. Bought my first three shares for $38, then sold them for $40 and, after deducting the commission, made a $5 profit. A few days later, the share price skyrocketed to $200, and from that Buffett learned a lesson – those who are patient are rewarded.

2 Earned $53,000 at 16

Warren Buffett was a tactful and surprisingly hardworking worker from an early age. Delivering newspapers to The Washington Post every morning, he earned $175, more than the salaries of many teachers of the day. He also worked part-time selling collectible stamps, golf balls, and polishing cars. At 16, he was able to earn $53,000 and refused to go to college - he did not see the point.

3 He Wasn't Accepted To Harvard Business School

A few years later, Warren still decided to get an education and chose the Harvard Business School. But after a short interview, he was refused there.

Buffett was disappointed by this, but later decided to go to Columbia University after learning that there were professors Benjamin Graham (the "father of value investing") and David Dodd. He wrote in a letter: “Dear Dodd, I thought you were dead, but I found you alive and teaching at Columbia University. I would be flattered if you accepted me.” Warren was accepted.

4 He eats like a 6 year old

Warren Buffett is like a child in his eating habits. Likes ice cream, Utz potato sticks and Coca-Cola. According to him, a quarter of his daily calories are Coca-Cola.

He enjoyed eating at DQ so much that he decided to buy it. He takes his grandchildren and grandchildren of friends there every Sunday and treats them to ice cream.

When asked how he manages to stay healthy with such a salty and sweet diet, Warren Buffett replied that he checked the statistics: “The lowest mortality among 6-year-olds. So I decided to eat like a 6-year-old child.”

5 Lives in the same house since 1958

Warren Buffett is unassuming in life and is not a lover of luxury.

He bought his house in Omaha, where he lives to this day, in 1958 for $31,500. This is a simple house with five bedrooms and one bathroom.

6 His father-in-law told him that he would be a loser

When Buffett proposed to his wife in 1951, his father-in-law invited him to chat. In a conversation, he confessed to him that he did not believe in himself or in his future. His fiancee's father was adamant that Warren Buffett would fail.

Buffett told CNBC that he thought his daughter would starve to death and Warren would fail. “But it's not your fault. They are all Democrats and they are all commies.”

7 People Pay Millions To Have Breakfast With Him

Knowing that the famous billionaire can give invaluable advice, it is not surprising that many are willing to pay for the right to chat with him. To do this, Buffett holds an auction once a year, with the winner of which he has breakfast. If in 2007 the amount was $600 thousand, then in 2012 a record was set - $3.5 million. A total of $20 million was raised.

The proceeds go to charity.

8 He Was Earning $37 Million A Day In 2013

At the beginning of 2013, he had 46 billion dollars, at the end - 59. The reason for this was a sharp increase in share prices.

9 About 94% Of His Wealth Was Made After Age 60

Success can come at any age. Although Warren Buffett was a successful man before the age of 60, he earned $ 94 of his fortune after 60 years. At 60, he had over $3.8 billion.

10 He Has 20 Suits And He Didn't Pay For Any Of Them

Buffett has only 20 suits and they are all created by one designer - Madame Lee. It started with a case in China, where several guys knocked on the door of his hotel room and started to do a fitting, wrapping it with a centimeter tape. They asked him to choose a suit from a catalog because Madame Lee wanted to give him a present.

Later they met with her and it was the beginning of a professional relationship between Warren Buffett and Chinese designer Li Guilian (Dalian Dayang Trands). He threw out the rest of the brands and has since worn only the suits of this brand.

Madam Lee later began making costumes for Buffett's friend Bill Gates and other influential people.

11 Spending billions on charity

In June 2010, Buffett announced that he was donating half of his $37 billion fortune to five charitable foundations. Bill Gates followed suit, with whom they launched the Giving Pledge philanthropic campaign to encourage billionaires around the world to donate part of their wealth to charity. 105 billionaires joined the action.

12 80% of their day is spent reading

Buffett is known for his love of reading. As soon as he wakes up, he pokes his head not at a smartphone, like most modern people, but at a newspaper. When asked what the key to success is, he pointed to a pile of books: “Read 500 of these pages every day. This is how knowledge works. They accumulate like compound interest.”

13 Survived Cancer

In April 2012, he was diagnosed with stage 2 prostate cancer. After 100 days of treatment, in September of the same year, he announced that he was completely healthy.

14 He Uses A Nokia Clamshell

Screenshot from the program on CNN

In 2013, on CNN, Warren Buffett, in response to a request from the host, showed his old Nokia flip phone, which he jokingly said was given to him by Alexander Graham Bell.

15 Buffett plays the ukulele

At 18, Warren was in love with an Omaha girl, Betty Gallagher, who loved to listen to the radio. To his horror, he learned that she had a boyfriend. After that, Buffett thought: what would he do that this guy can’t do. The solution was to learn how to play the ukulele, which he still can.

Warren Buffett, aka "Oracle of Omaha"- one of the most famous investors.

Biography of Warren Buffett

He was born in Omaha, Nebraska on August 30, 1930. His father (Howard Buffett) was a successful stock trader (he later became the owner of a brokerage firm) and a congressman. It is natural to assume that Buffett will continue the family tradition of business and investment. However, by and large it cannot be said that this "secret" made Buffett successful. Of course, the work of his father from an early age formed Warren Buffett's interest in financial transactions, markets, and the stock exchange.

Young Buffett made his first deal at the age of six. In his grandfather's store, he bought six cans of Coca-Cola for 25 cents each with pocket money and sold them for 50 cents to his family members (according to some reports, Buffett then earned only 12 cents, but the fact remains that at the age of 6 Buffett made his first money).

At the age of 11, Warren Buffett, seeing the example of his father, decided to try himself in stock speculation. Teaming up with his older sister Doris (Buffett had 3 sisters in total), and borrowing money from his father, he bought three Cities Service shares at $38. Soon their price dropped to $27 and then rose to $40. At this point, Warren sold the stock to take profits and made $5 minus commission. However, just a few days later, Cities Service's price topped $200 per share. Buffett still remembers that mistake of his. He learned his lesson: it is useless to compete with the stock exchange in the ability to predict the situation. Since then, Warren Buffett believes that life itself taught him the main principle of investing - "patience is rewarded".

At the age of 13, young Warren Buffett took over the delivery of the Washington Post newspaper and earned $175 a month from it. Inspired by success, he surprised all his relatives by declaring that if he did not become a millionaire by the age of 30, he would jump off the roof of the tallest building in Omaha. Then, in 1943, at the age of 13, Warren Buffett paid his first income tax of $35. Buffett successfully passed the 30-year mark, and earned his first million when he was 31 years old.

In 1945, at age 15 (in high school), Buffett and a friend invested $25 to buy a used pinball machine that friends had placed in a barbershop, and in the coming months built "net" slot machines of 3 pieces in different parts of the city.

Never become dependent on a single source of income. Invest to create a second source

In 1947, Warren Buffett graduated from the Washington Wilson High School (Woodrow Wilson High School), and before him, as before any young man, the question arose: what next; is it worth spending your time on learning when you can earn money at this time. By the age of 17, Buffett's fortune had reached five thousand dollars, which he earned in the same way - delivering mail and constantly trading. Admiration is the fact that if you translate this amount into a modern equivalent - 42 thousand 610 dollars and 81 cents, it becomes clear that even then Warren Buffett firmly decided to become a millionaire.

Clarity on the issue of continuing education was brought in by Warren's father, Howard Buffett, a former broker who popularly explained to his son on his fingers that only people with a decent education earn the biggest money in life. Of course, this is not about the knowledge gained, but about the social status, which only allows you to open important doors in the right institutions.

University studies

As a result, after graduating from high school in 1947, Warren Buffett entered the University of Pennsylvania (The Wharton School) in the Faculty of Finance, where he studied for two years. In 1949, W. Buffett joined the Alpha Sigma Phi fraternity, whose members, also from the University of Nebraska, were his father and uncle. The fate turned out so that Howard Buffett (the father of the future billionaire) lost in 1948 another congressman's election campaign and the family moved back to his native Omaha, Nebraska, and Warren moved to the University of Nebraska, where he received a bachelor's degree in 1950. After that, Warren Buffett moved to the University of the District of Columbia, to the business school (Columbia Business School). It should be mentioned that he applied to the Harvard Business School, but was not accepted there.

It is not known how much Buffett's choice predetermined the fact that such experts in the field of securities as (Benjamin Graham) and David Dodd taught at his new university. Graham's impressive work, written jointly with fellow Columbia University professor David Dodd in 1934, has gone through countless reprints, sold millions of copies, and unconditionally took the pedestal of the Most Important Book in the life of any serious investor. Graham was the father of fundamental analysis, the founder of the school of "value investing" and a truly outstanding person.

Graham's concept of "value investing" is based on the idea of ​​the irrational nature of stock trading. Instead of trying to predict the behavior of a security, a prudent investor should focus on studying the company's intrinsic value and its financial performance (primarily price-to-earnings and price-to-book value). Having thoroughly rummaged through quarterly and annual accounting reports, you can always find a “gray horse”, whose exchange value (so-called market capitalization) is significantly lower than the real price. It is in such undervalued securities that “reasonable investors” should invest their money. According to Graham, sooner or later, the stock market imbalance will be eliminated and each security will be rewarded according to its merits. Graham's Popular Exposition of Ideas, (1949), Warren Buffett has repeatedly called the best book ever written on the subject of finance.

Anyway, at Columbia University, Buffett attended Benjamin Graham's seminar on securities analysis, and his final grade was an A+, Graham's first outstanding grade in his teaching career. However, Graham did not take Buffett to work in his company (Graham-Newman), and the future billionaire began his official career in his native Omaha at his father's firm as a sales manager for investment products.

Working at my father's brokerage house

At the same time, Buffett began to teach his own seminar at the University of Nebraska on the principles of investment. At that time (1951), Warren Buffett was 21 years old, and the average age of his students was twice that. It is said that one of the first companies he recommended to buy while working in his father's firm was the insurance company Geiko. (Today, Geico is the sixth-largest auto insurance company with over $4 billion in profits and is one of the cornerstones of Buffett's Berkshire Hathaway holding, which took control of Geico in 1976 and took over the company entirely in 1996.)

However, most likely, the appearance of this company in the fate of Warren Buffett is due to the fact that a member of the board of directors of Geiko was Benjamin Graham - the same Graham who taught a course in securities analysis at the university. After learning this detail about the company, Buffett immediately boarded a train and left for Washington, where he knocked on the door of Geiko's office on the day off. In the early 1950s, Geiko was just a small company with almost a single employee, Lorimer Davidson, who held the honorary position of financial vice president. He happened to be in the office that very day, and Buffett talked to him for several hours. In the course of this conversation, Buffett managed, so to speak, "first-hand" get information about the principles and features of the functioning of the insurance business and risk management, which greatly helped him in the future. However, the financial condition of Geico then did not matter to Warren: the main thing, as it turned out later, he found a person who could become a link between him and B. Graham.

He returned to Omaha and continued to work for his father's brokerage firm. Between 1950 and 1956, Buffett's net worth increased from $9,800 to $140,000. Warren Buffett married Susan Thompson in 1952 at age 22.

In 1954, Benjamin Graham finally offered Buffett an analyst position at his company, where Warren worked for two years. During this period, he became adept at stock exchange operations and felt ready to start a big business.

Founding of Buffett Associates

So, in 1956, Buffett returned from Washington to Omaha and founded Buffett Associates ("Buffett Partnershop Ltd"). Seven members of his family and friends contributed their shares to the capital, which amounted to $105,000. Interestingly, Buffett himself invested only $100 in the new project, although, as already mentioned, the size of his personal fortune at that time was already about $140,000. However, he calculated it is necessary not to touch your capital in case of an unsuccessful investment of other people's money.

That's why Buffett's personal contribution was only $100. In 1958, Buffett's partnership funds doubled from 1956 levels. The history of Buffett's investment decisions since then can be continued indefinitely, or rather, up to the present time. And in the overwhelming majority of cases, these decisions turned out to be correct and brought profit to Buffett himself and the shareholders of his company.

If you buy what you don't need, then soon you will start selling what you need.

Buffett's salary as director of the fund was not guaranteed. At the end of the year, the profit was distributed among the shareholders at the rate of 4% per annum. If there was more profit, then the increase was divided between partners and Buffett in a ratio of 3: 1. If there was less profit or there was none at all, then Buffett remained without a salary.

Of course, Buffett made sure: in 1962, he found the textile company "The Berkshire Hathaway", incurring losses. With a net asset value of $19 per share, no one wants to pay more than $8 per share. Nobody but Buffett. He started buying up the company. By 1965, Buffett Partnershop Ltd owned 49% of the company and Warren Buffett was elected director. To the surprise of other shareholders, the new director did not develop textile production, and began to direct all the company's income to the purchase of securities.

Buffett's next big purchase was the insurance business. In 1967, he acquired National Indemnity Co., then GIECO for $8.6 million and $17 million, respectively. Now the insurance sector in the Berkshire Hathaway empire is valued at more than $7.5 billion. Then, in 1967, The Berkshire Hathaway paid dividends for the first and last time. Since then, all profits have been reinvested, which has become another of the secrets of Buffett's success.

In 1970, the Buffett Partnershop Ltd fund was liquidated. All shareholders were asked to receive either stock in The Berkshire Hathaway or money. Buffett naturally chose the former. Thus, he became the owner of a 29% stake in The Berkshire Hathaway. For 30 years, he has not sold a single share, but he also bought it. Now he owns 42.7% of the shares of this company.

Warren Buffett made his most successful purchases during or immediately after major stock market crises, when most investors bypassed the market. So, during the crisis of 1973, he bought for $11 million a large block of shares in the Washington Post newspaper (now this package is worth $1.1 billion). In 1988, shortly after Black Thursday 1987, The Berkshire Hathaway spends $1.3 billion to buy Coca-Cola shares. In addition, The Berkshire Hathaway portfolio includes large stakes in American Express, Gillette, McDonald's, Walt Disney, Wells Fargo Bank, General Rea and others. The share price of The Berkshire Hathaway itself has risen from $8 to $43,500 in 35 years.

How much has Buffett earned in his lifetime? On the one hand, not much. According to experts, his average income over the past 35 years was about 24% per annum. What is 24% per annum for a speculator? They earn 24% per month, or even per day. Take a list of the most profitable investment funds of the last year. It's all over 500% or more - that's 20 times more than Buffett! The only difference is that he earns it every year and steadily, and they once in a lifetime. Therefore, there are many funds, but Warren Buffett is one.

Everyone considers his outstanding ability, first of all, super-successful investments. A person simply knows the art at the right time to buy what you need and sell it right. He buys shares backed by serious assets, in the expectation that sooner or later the market will appreciate these securities. His main strategy is to buy undervalued companies. Buffett is also known for the largest acquisitions and mergers, as well as transactions for the purchase of insurance companies. In the 90s, Buffett was saved by the investment bank Salomon Brothers.

Until recently, it seemed that Buffett made a big mistake by not appreciating the prospects of high-tech companies. If in February the whole Wall Street made fun of Buffett, the old speculator does not understand anything about "new economy", since all investors who invested in shares from NASDAQ earned 30-40% per annum, now the situation has turned 180 degrees. In March 2000, a huge drop in stock prices began, as a result of which the shareholders of high-tech companies lost 60% of the value of assets.

From that moment on, the value of Berkshire Hathaway shares began to rise.

Although Buffett speaks favorably of high-tech companies, he is in no hurry to invest in them. During the boom of the Internet companies, many reproached him for losing a profitable investment opportunity. However, Oracle is skeptical of companies whose products it does not use itself. Microchips, software, biotechnology and satellite communications are denied attention by Berkshire Hathaway on principle grounds: “I personally do not understand how all this is made, - Buffett proudly declares, - and if I don’t understand something, then I don’t invest”. The Great Investor doesn't even have stocks in time-honored companies like Microsoft and Hewlitt-Packard because their returns cannot be predicted 10 or 20 years into the future. By the way, Buffett connected to the Internet only in 1997 - but only in order to play poker online. And this is despite the fact that one of Warren Buffett's friends and his regular golf partner is Microsoft President Bill Gates (who, by the way, owns shares in Berkshire Hathaway).

What's the secret "The Oracle of Omaha"?

Investment Principles of Warren Buffett

Warren Buffett, according to most of his colleagues, is the most successful investor who has made his capital by investing in stocks. However, the word "luck" probably not the most appropriate here. In choosing investment objects, Buffett adheres exclusively to fundamental analysis - he selects stocks according to the financial and production indicators of issuing companies. He buys not just shares, but the successful business behind these securities. At the same time, Buffett prefers those assets that, in his opinion, are undervalued at the time of purchase. Of course, Buffett is a long-term investor - on average, he holds stocks for 10 years. And according to him, he does not care what happens on the stock exchange after he bought them. By his own admission, he will hold good stocks only as much as they will be able to make a profit. He will not sell them ahead of time, and this may slightly reduce the financial performance of Berkshire Hathaway (BRKA) (BRKB), according to Buffett himself.

"The Secret to Successful Investing", says Buffett, nicknamed the "Oracle of Omaha" for his investment sense, pick good stocks at the right time and hold them as long as those stocks are good.”. The most famous and most often cited illustration of the success of Buffett's strategy is the fact that $10,000 invested in his company in 1965 would now bring in about $30 million. The same $10,000 invested in the S&P 500 index would now be worth only $500,000. Buffett himself is consistently featured in the top three richest people in the world, compiled by Forbes.

Buffett's strategy is set out in 13 principles of corporate governance, formulated by him in 1983.

First, Buffett sees himself, other Berkshire executives, and the company's shareholders not as parties to a share sale but as partners jointly investing in shares. And these are not empty words. In his letter to shareholders, Buffett once admitted that 99% of his personal wealth was invested in Berkshire Hathaway stock. His closest associate (Charlie Manger) invested 90%. Shares in Berkshire Hathaway are also owned by family members of the company's directors, their friends and acquaintances.

According to Buffett, this approach pays off, as the high diversification of Berkshire's investments significantly reduces their riskiness. In addition, Buffett argues that such an investment strategy emphasizes the principle of partnership between the directors and shareholders of the holding - if the shareholders suffer losses, the directors of the company bear proportional losses. There are 11 seats on the board of directors of Berkshire Hathaway. It includes, in particular, Buffett associate Charlie Munger (Charlie Munger) and son - Howard Buffett (Howard Buffett). In 2004, after the death of Buffett's wife, Susan Buffett, Bill Gates, one of the company's shareholders and a friend of Buffett, joined the board of directors of Berkshire Hathaway.

A very important principle of Buffett is non-interference in the operational management of the acquired companies. "Oracle of Omaha" buys a company that seems attractive to him, and the only operational decision he makes is the appointment or reappointment of the general director of the company and the determination of the amount and procedure for his remuneration. As a rule, remuneration provides for managers to receive options on the company's shares upon achieving certain results. All other decisions remain on the conscience of the manager. In the overwhelming majority of cases, this approach justifies itself again - in an effort to increase their own remuneration, managers increase the capitalization of the company, which is what Buffett is trying to achieve.

The most successful people are those who do what they love.

Risk minimization is one of the cornerstones of Buffett's strategy. By his own admission, he would rather give up an interesting acquisition than increase his company's debt burden. It is no coincidence that his Berkshire Hathaway holding is now one of only seven issuers with the highest credit rating according to Moody's - Aaa. A high credit rating gives Buffett a low cost of capital. Buffett believes that one of the main evils that damage the modern economy is the wrong system of distribution of rewards among financial market participants. In his opinion, a significant part of transactions in the stock market is recommended and carried out for the personal enrichment of intermediaries - various kinds of brokers and traders. It would be perfectly reasonable to limit the number of allowed transactions for each person during his entire life. Buffett gives the number 10 - no more than ten transactions in a lifetime for each of the participants in the financial markets.

However, even Buffett is wrong. In 2005, he counted on the fall of the dollar, and the volume of short dollar positions by the end of the year was $21.4 billion. According to Buffett's calculations, the dollar should have fallen to $1.40 per euro. Instead, thanks to the Fed's monetary tightening campaign, the dollar rose 14%, and Berkshire Hathaway lost $955 million in currency losses. Along with Buffett, by the way, such big players as (George Soros) and Bill Gates lost their investments.

To Warren Buffett's credit, it should be said that since 2002, at the end of 2005, Berkshire Hathaway's profit from foreign exchange transactions amounted to $ 2 billion. By the way, that in 2002, for the first time in his life, he began to invest in foreign currency, Buffett said in letter to shareholders in March 2004. At least one Berkshire shareholder was very surprised to learn of Buffett's currency dealings. This shareholder, Tom Russo, a partner at Gardner, Russo & Gardner, has attended Berkshire's annual meetings for 15 years.

According to him, every time Buffett was asked a question about the dollar or currency trading, Buffett's answer invariably came down to the following: "You can't make money by betting against the United States of America".

Over the past year, Buffett has reduced his investment in currencies. He compensated for this step by buying shares of foreign companies denominated in foreign currencies, or American companies that receive the bulk of their profits abroad. Buffett remains very pessimistic about the state of the US current account. In addition to the trade deficit, which has reached record highs recently, the balance of investment income, according to Buffett's forecast, will also soon turn negative. At the same time, Buffett acknowledges that the US economy is able to withstand these negative consequences, but not for long. In the future, if this problem is not addressed, it can become very, very painful, Warren Buffett warned.

In running Berkshire Hathaway, Buffett often refers to a key investing principle he learned at a young age: waiting. In this regard, his letter to Berkshire Hathaway shareholders, published in March 2003, is revealing. Speaking of himself and his deputy, Berkshire Vice Chairman Charles Munger, Buffett writes the following: “We continue to do next to nothing on stocks. Charlie and I are feeling more and more satisfied with our investments in Berkshire's largest investees, most of which have increased their returns while their stock valuations have improved. But we are not inclined to buy shares in addition to existing packages. Although these companies have good prospects, we still do not think that their shares are undervalued. In our opinion, the same applies to the stock market as a whole. Despite three years of price declines that have greatly improved the attractiveness of common stocks, we still find very few that are of even moderate interest to us. This sad fact testifies to the madness in value characteristics that stocks reached during the Great Bubble (late 1990s - early 2000). Unfortunately, the hangover can be proportional to the binge. The stock aversion that Charlie and I currently exhibit is not at all innate. We really like to own common stock - if it can be purchased at attractive prices ... But sometimes successful investing requires inaction ”.

However, in an interview with the financial publication Barron's in October 2003, speaking about the mistakes made in the past, Buffett expressed regret that he did not buy shares in the retail company Wall-Mart Stores at the time. He considered them overrated. This mistake, according to Buffett, cost Berkshire $8 billion.

Companies with the largest share of Berkshire's $47 billion assets as of December 31, 2005 included 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. This data is contained in Berkshire Hathaway's 2005 annual report. At the end of 2005, Berkshire Hathaway's profit rose 16.6% to $8.5 billion, or $5,538 per share. In 2004, earnings were $7.31 billion, or $4,753 per share. During the year, 5 acquisitions were initiated. The book value of Berkshire shares rose 6.4%. Berkshire Hathaway stock hasn't been split in 41 years.

Meanwhile, the annual reports and messages to shareholders that Buffett writes about the activities of Berkshire Heathaway are receiving recognition far beyond the investment community.

In February 2005, the National Commission on Writing for American Families, Schools, and Colleges recognized Buffett's contributions to writing. In comments on the 2005 award, the commission pointed to "clarity, deep vision and wit" inherent in Buffett's reports and their great impact on business America.

Warren Buffett's personal life

In everyday life, Warren Buffett is quite conservative and economical. First, he, in his own words, prefers to buy those companies whose products he uses. So, in one of the letters to shareholders of Berkshire Hathaway, he admitted that he drinks five cans of Cherry Coke daily. He recently announced that he would not be running for re-election as chairman of the board of directors of Coca-Cola so that he could focus on other areas of Berkshire's work. However, he is not going to sell his stake in the company (currently 8.4%). Switching to drinks from Pepsi, presumably, too. Buffett is very frugal, if not stingy.

Buffett did not move to live on the California coast, but continues to live in Omaha in a house that he and his wife bought back in the 1950s. Since The Berkshire Hathaway does not pay dividends on principle, and Buffett did not sell his shares and does not intend to do so, he has to live on a very modest salary and private savings. He lives in his home on Farnham Street in Omaha, bought back in 1957 for $31,500. He drives his own car, saving on the driver's salary. Even the license plate on his car is a sign that says "Thrifty". Buffett prefers to eat hamburgers, without changing his principle even in gastronomic matters - his share in McDonalds is 4.3%.

According to his will, after his death, the family will receive only a small share of his vast fortune. Most of it will go to charitable trusts. And one more oddity. Buffett is said to be a notorious technophobe. At home, he does not only have a computer, but even a fax machine. They say that Buffett was recently taught to use a computer by his friend Bill Gates. The latter had to make great efforts to convince Buffett of this.

Warren Buffett is a very extraordinary person, and many experts believe that Berkshire Hathaway owes its success, first of all, to his personal charisma and abilities. What will happen to the company when Buffett decides to retire? No one knows. Buffett, according to him, has already chosen a successor, or rather, two successors, but he keeps their names a secret. Will Buffett's latest "investment decision" be as right as the previous ones?

It is significant that in the entire forty-year history of Berkshire Hathaway, Warren Buffett has not sold a single share of his stock! A similar practice is followed by most of the other investors of the holding, which over time acquired all the manners of an elite club: annual gatherings (Berkshire Hathaway Annual Meeting), rituals and personal mythology. In November 2005, the stock price of one share of Berkshire Hathaway (NYSE: BRK A) was $90,500! One share! For comparison: a Microsoft share costs $28, a Coca-Cola share costs $42.

On a purely symbolic level, Warren Buffett realized a childhood dream: he brought the profit received from the purchase of three shares in his first exchange transaction from $6 to $280,000!

It's time to answer the question: "Why does Warren Buffett need $62 billion?". Indeed - why? In his will, Buffett indicated that 99% of all his money after his death would go to the so-called "Buffett Foundation" (Buffett Foundation), led by Allen Greenberg, the ex-husband of Warren's daughter Susie.

If today this odious organization survives on a meager ration (the miser Buffett annually contributes mere crumbs - $ 10 million to the fund named after himself), then after the death of the owner, the Buffett Foundation will overnight turn into the richest charitable foundation in the world.

In June 2006, Warren Buffett announced that he was donating over 50% of his fortune, or about $37 billion, to five charitable foundations. Most of the funds went to the fund managed by Bill and Melinda Gates. This act was the most generous act of charity in the history of mankind.

Buffett has an exceptional sense of humor and is always willing to make fun of himself. Among his more famous jokes are: “I actually wear expensive suits, they just look cheap on me.”.

Buffett is unassuming in life, avoiding luxuries, except for private jets, which are truly his weakness (with characteristic Buffett humor, the first used aircraft he bought was called "Defenseless"(Indefensible)). Buffett enjoys playing ukulele and playing bridge, including with Bill Gates. In addition, Buffett enjoys playing Internet poker, for which he hired a programmer on the staff of Bekshire Hathaway. Once a year, Buffett has breakfast with the person who won the right at an auction. In 2007, breakfast with Buffett cost the winner $600,000. The collected funds are transferred to charitable purposes. In 2008, Warren Buffett topped the list of the richest people in the world (according to Forbes magazine). In 2016, Forbes estimated Warren Buffett's net worth at $65.5 billion.

We also offer to watch a video about Warren Buffett

Warren Buffett started buying securities as a teenager. Rich business experience and extraordinary knowledge helped him to become the richest person on the planet today.

Warren Buffett closes the top three richest people on the planet. Today, his fortune is equal to 84 billion dollars, and the success story can be a good motivation for novice traders and investors.

• FULL NAME: Warren Edward Buffett.
• Date of Birth: 30.08. 1930.
• Education: Columbia University.
• Business start date/age: selling newspapers, one-time stock purchases, buying, repairing and installing slot machines (all in adolescence).
• Type of activity at the start: investment partnership Buffett Associates.
• Current activity: businessman, billionaire, philanthropist.
• Current state: 84 billion dollars.

Warren Buffett is a living legend, a self-made man, as Americans like to say. Perhaps it is the national trait of a native of the United States - the desire to become a billionaire from childhood, and has become the guiding vector of our hero since childhood. Today, this businessman is the most serious competitor of Bill Gates, and the success story of the talented Mr. Warren Edward Buffett begins just from this tender age.

Childhood of Warren Buffett

One of the richest people today, Warren Edward Buffett (Warren Edward Buffett) on the planet was born on August 30, 1930 in Omaho, Nebraska in an ordinary American family. His father was a stock trader (later became a congressman), his mother was a housewife (and a former fashion model). Warren had two older sisters, Doris and Roberta. The family has always lived in prosperity, but since childhood the boy dreamed of achieving something more.

Photo 1. Since childhood, the boy dreamed of being a billionaire.
Source: www.uznayvse.ru

The father is the main example of Warren, who influenced the formation of his personality. The head of the family sacrificed his desire to be a journalist and decided to become a broker, taking up the sale of securities in demand during the Great Depression.

The youngest broker

Brief biographical data says: Warren Edward Buffett got his first business experience at... 6 years old: he bought several cans of Coca-Cola and sold them several times more expensive. Looking at his father, at the age of 11, the boy also decides to play on the stock exchange. With his sister's savings, he buys three Cities Service Preffered shares for $38 each. Having waited for the price to rise, the boy sells them already at $40, but literally a week later the value of these securities rises to $200.

The businessman learned this lesson for life - it was he who formed the basis of long-term investing - a principle that Buffett follows to this day.

Moving to Washington

In 1942, the father of the protagonist wins the elections to Congress from the Republican Party, and the family moves to Washington. In the capital, our hero graduates from Alice Deal Junior High School and Woodrow Wilson High School. And here Buffett continues to make money.

Another example of a person who was born into a wealthy family but "made his own name" is John Mars.

The teenager started by selling newspapers - working on five routes, he optimized them so much that he could earn as much in a month as an adult. And by the age of 14, his savings include an amount of $ 1,200 - with this money he buys a plot of land in his native Nebraska, in order to rent it out to a local farmer in the future.

Young Warren Edward Buffett does not stop there: in high school, he and a friend start another business project. We are talking about the purchase of decommissioned slot machines (the price for them was about 25-75 dollars). The guys repaired them and installed them in hairdressers. The move was correct: both the customers who whiled away the time playing the game, and the owners who received a percentage of this, and, of course, the young entrepreneurs themselves, remained satisfied.

But the young man quickly cooled down to this earnings. After graduation, he sold the business for $1,200.

Higher education

Warren's next target was Harvard, but then the first mistake happened - the young entrepreneur was not approved at the educational institution, citing the fact that he was "too young." This decision turned out to be for the best - the young man enters Columbia University (New York City), where he meets Benjamin Graham. A well-known stock trader and economist taught the young businessman the basics of investing.

Both immediately felt like-minded people in each other: Buffett even calls Graham the second great person in his life (after his father). And the economist's book "Reasonable Investor" has become a desktop guide in the life of our hero. The strict teacher did not stand aside, giving Buffett the highest score in his subject (by the way, the only one from the course).

According to Graham, investing was not a fluke, but a real science, which involved the analysis of the financial condition of the company. Based on these rules, Warren developed his own concept, which suggested: you need to "buy not the shares themselves, but the business behind them."

Graham's concept completely refuted the rules of Wall Street that prevailed at that time, which were positioned on instant profit. After all, finding good investments was not so easy - this required patience and a thorough analysis of the balance sheet of firms. All this was to the liking of Warren, who also had a mathematical memory.

Mr Buffett's career

After receiving a diploma, Buffett has been working in various companies for several years. However, the dream of owning a business turns out to be stronger. And in 1956, the entrepreneur, with the support of a group of entrepreneurs (each of whom gave him $ 25,000), opens his first investment partnership, Buffett Associates.

Himself, being the chief manager of the firm, was able to invest only 100 dollars. It is known that the initial capital of the company was 105,000 dollars, but our hero quickly turned it into 7 million dollars.

Buffett did the following: to beat the growth of Dow Jones, he set the program to 10% per year. And two years later, his investments grew by 29.5% (DowJones, in comparison, rose only by 7.4%).

In 1965, another acquisition - a controlling stake in the textile company Berkshire Hathaway, known for its unprofitability. But at that time, the entire textile industry of the States was in a similar state.

Our hero is re-profiling the enterprise into a huge holding. The direction was chosen correctly: the company has become a leader, which today controls no less than forty companies from various market sectors - from publishing houses to furniture production.

Photo 3. Buffett has always been a talented strategist.
Source: seeker401.files.wordpress.com

In 1976, Buffett was lucky again - luck is associated with the passage of the Social Assistance Act. A businessman decides to buy five insurance companies at once. This move helped subsequently increase his fortune to $28 billion.

The purchase of insurance companies is called the classic move of our hero, because insurance premiums are always payment in advance, that is, cash flow even in difficult times. This money was used to further develop the funds, and Buffett looked for other objects, buying shares in other companies.

In 2007, Berkshire Hathaway was named the world's most respected company.

Today, Buffett continues to keep his finger on the pulse - he is also the chairman of the board of directors of Berkshire Hathaway. Plus, the businessman owns 31% of the shares. The company's shares are recognized as the most expensive in the world and are sold at a price of 64,000 euros per share.

Buffett acquisitions in the new millennium

Interestingly, about 99% of his wealth Warren earned after fifty years. But despite his advanced age, today the businessman continues to be active. This is evidenced by such acquisitions:

• in 2009, the transcontinental railway BNSF Railway got into the businessman's assets;
• in 2015, the list was replenished with the island of St. Thomas (Aegean Sea);
• in 2016, the businessman bought Apple shares (first spent $1 billion on it, and then increased the amount by another $600,000).

Photo 4. Warren Buffett is full of grandiose plans, despite his age.
Source: rabotnikitv.com

Scrooge McDuck in the flesh

Warren admits that he invests in organizations that he likes. Therefore, his investment portfolio includes McDonald's, American Express, Gillette, Walt Disney and others.

Photo 5. Buffett's cartoon prototype is the stingy Scrooge McDuck.
Source: news-hunter.pro

By the way, about the last company: the character from "DuckTales" Scrooge McDuck is not only the billionaire's favorite hero, but also completely resembles him with his stinginess. After all, Warren continues to live in the house he bought in 1956 (acquired for $ 30,000) and is in no hurry to update his old car.

Financial condition

Until recently, Buffett was the second most financially wealthy person on the planet, second only to the creator of Microsoft. Today, a major global investor is in third place (the first is now occupied by Jeff Bezos).

Photo 6. The two richest people in the world are also friends with each other.
Source: vestnik.icdc.ru

The financial condition of our hero in 2018 is 84 billion dollars. It is interesting to follow the changes in wealth during the period 2014-2018:

Tab. 1. Forbes data on changes in the financial condition of U.E. Buffett for the period 2014-2018

At the age of 22, unknown investor Warren Buffett married Susan Thompson, together they raised three children: Susan Alice, Howard and Peter. All three children followed in the footsteps of their parents and are actively involved in charity work. Susan Thompson Buffett died of cancer in 2004. At the second Forbes Charity Summit, Warren Buffett answered a few questions about parenting.

Warren, how do very rich people raise their children, instill their values ​​in them? How did this happen in your family?

Warren Buffett: Our children grew up in normal conditions. We lived all our lives in the same house, which I bought in 1958. They did not settle in expensive newfangled houses, did not fly in private jets. They went to school by bus. Every member of the Buffett family in Omaha went to public school. The children went to the same school where their mother studied. We lived in an area where the median income of a neighbor, by today's standards, was $75,000 or so a year. Therefore, they did not consider that we were financially different from others.

Did you really try not to change your lifestyle as your wealth grew?

Warren Buffett: No, I just lived my life the way I saw fit, and my wife lived the same way, and the kids grew up with the same mindset.

We could get anything, but we didn't have greed or anything like that. We enjoyed life. And the neighbors didn't think we were doing anything special. Although they wondered about my occupation, because for about six years I did not even have an office. These years I worked at home, right in the bedroom, and I did not have a secretary or an accountant. Therefore, there was no reason for children to develop a special relationship with money.

Peter, when you found out that your father was on the Forbes list of the richest Americans, how did you feel about it? Did it affect your upbringing?

Peter Buffett: That was the time we found out how much money we have as a family. No kidding. I was already 20, and my mother and I somehow talked, because there was nowhere to go - here it is, in this rating. We laughed about it: “Really funny? That is, we know who we are, but now everyone treats us differently.” The transition was surprising, although not so noticeable - apparently because we did not live in a world or in those cultural traditions where wealth is flaunted. Our friends were as surprised as we were.

Warren Buffett: By that time, the kids had matured and they understood who their friends were, and they were friends because they liked to communicate, and not because they were the children of rich parents or something like that.

Warren, can you tell us about how you made the decision to give up most of your wealth to charity? How did you decide how much money you would leave to the children, and why did you decide to trust them to manage the funds?

Warren Buffett: My wife and I made this decision when we were in our 20s. We had everything you could want; I told her that there would be even more money, and she laughed.

We started a family foundation in the 1960s. We also jointly came to the decision that we can have one large family fund, but each of the three children should have their own separate fund.

I've seen funds where a lot of problems arose because several relatives sit on the board of directors and some feel that their interests have been neglected, and so on. These things tend to get worse, and then relatives begin to remember that one of them twisted his brother's cat by the tail when he was six years old ( laughs), and you know, this is not the end of the matter.

So about 25 years ago, we set aside a relatively small amount that each child would receive. Then, in the late 1990s, I formed three firms, and one Christmas I gave them to children. We started with $10 million each, but said there would be more, and ordered them not to sue each other. In charity, it is not always clear what kind of activity will justify itself. So we intended to add money along the way, but add equally.

I was not on the boards of directors of these three funds. The wife was also far from advice. The funds were entirely given to the children. We increased the amount several times, and once we did it for the last time, on my birthday I doubled the amount that went into each fund. Letters in which I tell children what to do are on BerkshireHathaway.com. In them, I mentioned that I expected them to fail in some areas. If they don't, then they're doing something wrong. I also wrote that I am proud of all three children and approve of any choice they make about how to deal with money. This is a very simple approach.

Peter, what was it like for you?

Peter Buffett: My sister called me in March 2006 and said, "Are you far from the fax?" I went to the machine, which gave a message that the father was going to do all this. There were no preliminary conversations. Initially, we had a very small fund, and after 1999 it became huge. It went from $10 million to about $120 million in about six years. And, of course, we have learned a lot during this time.

What has changed in your life?

Peter Buffett: My wife Jennifer helped me a lot with the foundation because I was seriously engaged in my career Forbes). Moreover, I had my own life, in which every day was scheduled.

For two years we just listened. We visited New York and it was like a workshop because we could talk to anyone. It's funny, you know, when you have a billion fund, your jokes get funnier, you look better, it's just magical.

And people agree to meet with you.

Peter Buffett: Exactly. We respected the time and effort of those around us, but met with everyone in a row to learn a lot. And it really is priceless.

Warren, how important is it to encourage kids to do what they want?

Warren Buffett: We never gave them any special instructions, but I think they imbibed values ​​that were meaningful to their mother and to myself. One of the main points for which I am most grateful to my father is the approval of any of my undertakings. He did not try to implement his ideas through me. And I tried to pass it on to my children.