Warren Buffett, the greatest investment house of all time
Today, American billionaires are still at the forefront of the list of the richest people in the world, their vast fortunes come from a variety of sources, from different businesses. Among them is still a billionaire who is always mentioned by the "simplicity, humility" before and after as one, it is Warren Buffett, the greatest investment house of all time.
Warren Buffett - The greatest investment house of all time / ph: pinterest
According to Forbes Magazine, Warren Buffett is the second richest billionaire in the world with assets of more than $ 44 billion and in the next 10 years, his fortune will be up to $ 100 billion. But this billionaire is completely different from the famous billionaires of the 80s. He was known as a "clean" rich man.
He worked without a computer, but he was always one of the richest men in America in the 1990s and was admired by the king of information technology, Bill Gates.
That's investment house Warren Edward Buffett. He was born in 1930, studied Finance at the Wharton School of Finance for the 1947–49 school year, then suddenly transferred to the University of Nebraska and then graduated from this faculty there in 1950. Not satisfied with his degree, he continued to follow and studied at Columbia University and earned a master's degree in economics in 1951.
Then he went to work and tested for a while two of his outstanding abilities: working as a salesman while also analyzing stocks. In 1965, he acquired a majority stake in the textile company Berkshire Hathaway and in 1970 became President and CEO of the company.
And with his talent, this talented boss turned the textile factory into a giant corporation in the 1990s, operating in the "delicious" fields but the most difficult to do is to buy and sell the company. insurance, production and service ...
Although living a simple life, nothing outstanding compared to his neighbor, this investment house is quite generous with charitable activities. He is now with the famous singer Bono, who sang at his wife's funeral last year, actively participating in anti-AIDS activities on a global scale.
Like Bill Gates, he revealed that he would spend 99% of his fortune donating to a charity named after him, the Buffett Foundation, as well as donations to other charitable organizations. This investment house has not yet decided to leave his fortune for one of his 3 children. He said he had written a will, but only mentioned how he would decentralize the management of his Berkshire Hathaway Company and be opened only after his death.
Warren Buffett is a fairly quiet American, but every word and action makes the world notice. The richest man in America lives modestly in a house far from Wall Street, the largest financial and stock exchange in America and the world. He lives in Omaha, a small town with 300,000 inhabitants of Nebraska.
His office looks like a doctor's clinic, with only 11 employees helping him run his entire village. Old fashioned work, meaning no need for computers or computers. Warren Buffett's humility has made him the hero of America, a pure, simple, honest character in the financial sector.
Journalist Adam Snith, author of "Supermoney" wrote about him as follows: "No need for machines to track up and down movements of company stocks in the stock market, no need for tranquilizers, no need to cut beautiful nails, no need for bustling wins. Just simple, easy to understand values. He spends a lot of time playing with his children in football games or watching the rice fields.
Very humble, but investment house and billionaire Warren Buffett sometimes "can play" and sometimes his mind is a bit unusual. In 1983, on the day of his birthday, he suddenly came up with the intention of buying a supermarket to sell tables. Nebraska Furniture chair by Mrs. Rose Blumkin He came to her to ask for the price, left and quickly returned with a check of 60 million USD Buying an entire supermarket without consulting an economist Come on, only Warren dares to think and can do it.
Many people consider Warren Buffett to have miracles for the dollar. Donald Keough, President of Coca-Cola Company, a close friend from the 50s told the story of Warren Buffet: “I have 5 children and I have to send the whole family to work every morning. Warren has 3 children and he stays at home to play the tram. One day Warren told me that if I gave him $ 5,000 I wouldn't have to worry about having enough money to go to college for my kids. At that time I did not know what Warren did so how dare to give 5000 USD. If I dare to give him that money, today I have enough money to buy the university.
Warren Buffet was born into a well-off family, his father was a Republican congressman four times, the owner of a foreign currency trading company. Buffett, at the age of 11, practiced to buy and sell stocks. At that time, this boy bought 3 shares of a company called Cities Service Preferred for $ 40 each. Soon after, the price of this stock dropped dramatically, but he still kept it instead of selling it off to save some investment. Not long after, he sold his numbers for up to $ 200 per share.
So spectacular, but he only really jumped into the business in 1956 with $ 5,000 out of pocket and $ 100,000 borrowed from friends to start a company. When the company dissolved in 1969, its capital increased more than 35 times its original capital.
In 1963 he bought 5% of all shares of American Express when the price per share was only 35 USD. Five years later each of the company's shares rose to 189 dollars. During the 70s, he invested heavily in public information companies and he became one of the investors holding large stakes in Time Magazine, America's leading advertising agency Ogilvy & Mathew, Interpublic company.
Warren Buffet's list of financial successes is not short and becomes legendary. The value of Beshire Hathaway Company that he currently owns with 44% stake is worth more than 10 billion USD.
Even the home purchase of the owner of the famous financial group Berkshire Hathaway is profitable, though he did not intend to get rich in the field. He bought a house almost 50 years ago in Omaha, for $ 31,500. In 2003, local property appraisers calculated Buffett's entire house for $ 700,000!
As a close friend of Bill Gates, but he firmly refused to invest in information technology projects, which was a trend during the 1980s and 1990s. And the internet bubble burst in early 2000 showed this mischievous old man's vision and sanity number 1. The investment house has not suffered from bankruptcy or severe shock like other movement investors.
He has a knack for seeing companies with growth potential that are either undervalued or very underrated. The investment house outperformed millions of other investors in that place. By buying companies and assets when prices were too low and then selling them at sky-high prices a few years later, his margins were almost unthinkable.
Specifically, in the past 40 years of hard investment, his Berkshire Hathaway Company has achieved an average return of 22.6% per year. Since 1965, Berkshire Hathaway's profits have grown by more than 2,000 times, owning more than 40 subsidiaries and employing about 150,000 employees. That is not to mention his large value stakes in Coca-Cola, American Express, Walt Disney or Gillette or small companies like Geico or General Re.
The September 11, 2001 terrorist incident almost caused the insurance industry to almost fall into crisis. His large investment also suffered a lot of damage, up to $ 3.8 billion. And so far, that is still the only significant loss of this tycoon.
Because of his foresight ability, Buffett is dubbed the "Prophet of Omaha". There is also some controversy and evidence here and there, but most Americans and international businessmen who worked with him regard him as the world's largest investment house of all time.
Warren Buffett, the greatest investment house of all time
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