Warren Buffett | The Road to Riches |

“In the business world, the rearview mirror is always clearer than the windshield.”

-Warren Buffett

Warren Edward Buffett, legendary value investor, turned an ailing textile mill into a financial engine that powered what would become the world's most successful holding company.

Known as the "Oracle of Omaha" for his investment prowess, Buffett has amassed a personal fortune in excess of $62 billion, making him top dog on Forbes' World's Billionaires list in 2008. He inspires legions of loyal fans to make a yearly trek to Omaha for an opportunity to hear him speak at Berkshire's annual meeting, an event ironically dubbed the "Woodstock of Capitalism".

The Early Years

Buffett was born in 1930 in Omaha, Nebraska. He was the second of three children and the only son of Leila (Maiden Stahl) and commissioner Howard Buffett, Buffett began his education at Rose Hill Elementary. In 1942, his father was elected to the first of four terms in the United States Congress and after moving his family to Washington, DC, Warren finished primary school, attended Alice Junior High School and graduated from Woodrow Wilson High School in 1947 recite his old part of the year: “love math, a future broker.”

Business Magnate

After finishing high school and, he found success business and investments, Buffett wanted to skip college to go directly to the company but was suspended from his father.

Buffett has shown interest in business and investment at an early age. It was inspired by a book he borrowed from the Omaha Public Library at the age of seven, a thousand ways to make $ 1,000. Many of Buffett’s early years were animated by business firms. One of his first business, Buffett sells chewing gum, Coca-Cola bottles or weekly magazine magazines door.

He worked at his grandfather’s shop. Although still in high school, he made money to transport newspapers, sell golf balls and stamps, and cars detailing, among other things. In his first concept of income in 1944, Buffett $ 35 deducted for the use of the bicycle and looked at his paper route. In 1945, as a high school student, Buffett and a friend spent $ 25 when buying a used pinball machine, which is placed in the local barber. In a matter of months, they had several cars in three hairdressers in Omaha. The business was sold at the end of the year for $ 1,200 to a war veteran.

Buffett’s interest in the stock market and investment dated in school days spent in the client area of a regional brokerage firm in his father’s brokerage office. On a trip to New York City at the age of ten, he made a point to visit the New York Stock Exchange. At 11, he bought three Cities Service shares preferred for him and three for his sister Doris Buffett (founder of the Lady Sun Foundation).

At age 15, Warren has made more than $ 175 a month to deliver The Washington Post. In high school, he invested in a company owned by his father and bought a 40-acre farm worked by the Farmers Tenant. He bought the land when he was 14 with $ 1,200 of his savings. By the time he finished college, Buffett had accumulated $ 9,800 in savings (currently around $ 99,000).

In 1947, Buffett entered the Wharton School of the University of Pennsylvania. He prefers to focus on his business; However, he enrolled due to pressure from his father. Warren studied there for two years and joined the Sigma Phi Alpha Fraternity. He then moved to the University of Nebraska-Lincoln, where, at age 19, he graduated with a Bachelor of Science in Business Administration.

After being rejected by the Harvard Business School, Buffett enrolled in the Columbia Business School, Columbia University after learning that Benjamin Graham taught there. He holds a Master of Science degree in Economics from Columbia in 1951. After graduation, Buffett attended the New York Institute of Finance.

Investment Style

Warren Buffett ‘s investment philosophy is often “value investing,” so called because it looks like the underlying value of a company, rather than the price movements of its shares. Buffett believes that investors should choose only the actions they consider to save forever.

The value of the investment is a highly disciplined practice by Buffett. He has given many succinct but incisive rules to invest in his famous letters to investing shareholders, publications and in the popular press.

Warren Buffett bought companies (Berkshire Hathaway is the most obvious example) that were underperforming and led them to profitability. Offers like this have convinced some people that Berkshire Hathaway looks more like a private equity firm than simply holding on and Buffett and his firm partners are not really value investors, but very cautious speculators.

Net Worth & Current Influence

Warren Buffett has a net worth of over $ 65 billion (as of March 2016). By far, most of its net worth is its shares of Berkshire Hathaway, a company that began to acquire in 1962. Over the past 50 years, Berkshire Hathaway has gone from being a textile manufacturer to an international investment conglomerate In sectors such as insurance, food and beverages, banks and private aviation.

Warren’s main influence was Benjamin Graham. Benjamin is well known in the investment cycle as the father of value investing. Warren has dreamed of working for the collaboration of Graham and Warren in 1954 had his chance when a job at Graham-Newman was offered. For two years, Warren has learned to be more disciplined of investors and successful under the watchful eye of Benjamin. When the Graham-Newman association ended in 1956, Warren used what he had learned to create his association in Omaha. These partners could one day become the first shareholders of Berkshire Hathaway.

Another great influence on Warren’s life is his long-term partner Charlie Munger. Charlie is a former lawyer turned investor who started his association in the 70’s. Despite being in the shadow of Warren, Charlie is a major investment manager and has recorded a total annual return of almost 20% and manages his own fund investment.

“Price is what you pay. Value is what you get.”

-Warren Buffett