Warren Edward Buffett was born on August 30, 1930, in Omaha, Nebraska, to Leila (née Stahl) and Congressman Howard Buffett. When he was seven years old, he was inspired by the book One Thousand Ways to Make $1000, borrowed from the Omaha public library. Imbued with a desire to generate income, Warren embarked on several entrepreneurial ventures, including selling weekly magazines, Coca-Cola and chewing gum door-to-door.
When his father moved the family to Washington D. C. to serve the first of his four terms in the U. S. Congress, Warren attended Woodrow Wilson High School. Throughout his high school years, he delivered newspapers, and sold stamps and golf balls. In 1944, as a high school sophomore, he filed his first income tax return, taking a $35 deduction for the use of his bicycle and his wristwatch on his newspaper deliveries. When he graduated from high school, 1947, his fellow students noted his affinity for numbers and business enterprise in a caption under his senior yearbook picture that read, “likes math; a future stockbroker.”
On graduation from high school, Buffett attended the Wharton School at the University of Pennsylvania and two years later transeferred to the University of Nebraska, where he graduated with a Bachelor of Science in Business Administration. He then pursued a Master’s in Economics at Columbia Business School under the guidance of Benjamin Graham, a renowned economist and value investor, who greatly influenced Buffett’s investment philosophy.
On completion of his Master’s degree in 1951, Warren Buffet took a job as an investment salesman at his father’s brokerage firm Buffett-Falk & Co. He remained at that firm until 1954 when he took a job as investment analyst at Benjamin Graham’s firm, Graham-Newman Corp, in New York City. Warren’s investment career officially began when he formed the Buffett Partnership Ltd. in 1956. He applied Benjamin Graham’s value investing principles, focusing on buying undervalued stocks of fundamentally strong companies. In 1962, Buffett began buying shares of a struggling textile company called Berkshire Hathaway, eventually taking control of the company and attaining for the first time in his career, a net worth of $1 million. By 2006, he would be recognized as the wealthiest person in the world
Over the years, Berkshire Hathaway evolved into a diversified conglomerate with holdings in various industries, including insurance, energy, consumer goods, and more. Buffett’s investment decisions, characterized by a long-term perspective, careful analysis, and a focus on intrinsic value, turned Berkshire Hathaway into a major success story.
Warren Buffett’s success as an investor earned him the nickname “Oracle of Omaha.” His investment philosophy emphasizes the importance of patience, rationality, and a strong understanding of businesses before making investment decisions. His annual letters to shareholders of Berkshire Hathaway embraced a witty and down-to-earth writing style, gaining him a cult following that hungered for his insights into business investment. In June 2023, Forbes estimated his net worth at $117 billion making him the fifth-richest person in the world.
In 2006, Warren Buffett made a significant announcement by pledging to gradually donate the majority of his wealth to philanthropic causes. He established the “Giving Pledge,” which encourages other billionaires to commit to giving away the majority of their fortunes for charitable purposes. Buffett’s philanthropic efforts are largely directed through the Bill & Melinda Gates Foundation, which focuses on global health, poverty alleviation, and education.
Warren Buffett’s legacy extends beyond his investment acumen. He is revered for his humility, ethical approach to business, and his ability to simplify complex financial concepts for the general public. His annual meetings in Omaha, Nebraska, known as the “Woodstock of Capitalism,” attract thousands of shareholders and enthusiasts who seek his wisdom.
