Warren Buffett is a multi-billionaire, but how did he get there?
Text of 25 Reasons Why Warren Buffett Is a Multi-Billionaire
25 Reasons Why Warren Buffett Is a Multi-Billionaire
25. He started investing young Warren Buffett bought his first
stock at age 11. Buffett quickly became hooked on all things
business he bought a paper route at 13 and never looked back.
24. He learned from the best As a 20 year-old, Warren Buffett
studied and worked under the tutelage of Benjamin Graham. Graham is
known as the father of value investing
23. He didnt stop learning Even today, Buffett says he spends
time reading and thinking: I insist on a lot of time being spent,
almost every day, to just sit and think. That is very uncommon in
American business. I read and think. Photo: Timeless Books
22. He lives by two simple rules 1. Never lose money. 2. Never
forget rule No. 1
21. He owns up to his mistakes Being a professional investor
for six decades, youre bound to make a few mistake. Buffett has
made plenty of mistakes, but he owns them and learns from
20. He found a good business partner Warren Buffett met Charlie
Munger in 1959. The duo teamed up in 1978. Meeting Munger changed
what Buffett looked for in a stock and company. Munger stressed the
importance of qualitative factors not just the numbers.
19. They got lucky Charlie and I are extraordinarily lucky. We
were born in America; had terrific parents who saw that we got good
educations; have enjoyed wonderful families and great health; and
came equipped with a business gene that allows us to prosper in a
manner hugely disproportionate to other people who contribute as
much or more to our societys well-being. -Buffett
18. He buys stocks and holds them forever Warren Buffett and
Berkshire Hathaway bought shares of Coca-Cola in 1988. Berkshires
original $1.3 billion position is now worth over $16 billion.
Buffett has said he never plans on selling a single share.
17. He lives within his means Despite being worth over $60
billion, Buffett still lives in the modest Omaha- home that he
bought in the 1950s.
16. He values reputation It takes 20 years to build a
reputation and five minutes to ruin it. If you think about that,
youll do things differently.
15. He loves the unloved Most people get caught up with the
newest and hottest tech gadget not Buffett. "I will tell you now
that we have embraced the 21st century by entering such cutting-
edge industries as brick, carpet, insulation and paint. Try to
control your excitement. -Buffett
14. He waits. And then waits some more Perhaps no investor is
more patient than Warren Buffett. Buffett bought shares of
Washington Post in 1973 for $10 million. Nearly a year after his
initial investment, he had endured a 20% unrealized loss on the
position. By 2004, Buffett had an unrealized gain of $1.7 billion
on the position. Waiting paid off.
13. He knows how to be different During the 2008 financial
crisis, most investors didnt want anything to do with stocks.
Buffett did. He penned this article for the New York Times and was
proved correct when the world didnt end.
12. He stays within his circle of competence Warren Buffett
isnt dumb. But, he also knows he cant be an expert on everything.
He sticks to the industries (banks, insurance, consumer goods) that
he knows and avoid the ones (tech) he doesnt.
11. He trusts others Berkshire Hathaway owns dozens of
subsidiaries. Warren Buffett micro-manages 0 of them.
10. He focuses on what he can control Warren Buffett is an
investor and businessman. Hes not a politician, scientist, or
fortune-teller. Buffett only focuses on the factors he can control:
His emotions and his own decisions.
9. He realized the power of insurance An insurance policy buyer
pays the insurer cash up front for a service they might receive.
This gets cash in the hands of Warren to invest quickly and often.
Buffett calls insurance: Berkshires core operation and the engine
that has consistently propelled our expansion since 1967.
8. He is humble If most of us had over $60 billion, wed
probably have an ego the size of Omaha. Not Buffett. He still sings
the praises of others. Buffett on the head of Berkshires insurance
operations (Ajit Jain): "If Charlie, I and Ajit are ever in a
sinking boat and you can only save one of us swim to Ajit
7. He doesnt pay a dividend Dividends can be great. Its
cold-hard cash in investors pockets. But Buffett understood early
that he could earn more on that money by keeping in Berkshires
pockets and rewarding investors by growing the business.
6. He doesnt check stock prices daily Daily stock prices mean
basically nothing when you are investing for decades. Games are won
by players who focus on the playing field -- not by those whose
eyes are glued to the scoreboard. If you can enjoy Saturdays and
Sundays without looking at stock prices, give it a try on weekdays.
-Buffett Photo: Rafael Matsunaga
5. Rhetoric doesnt scare him Turn on the local or national
news, and you will probably be told something terrible is
happening. Buffett looks at the glass half-full. Of course, the
immediate future is uncertain; America has faced the unknown since
4. He loves his job You dont work for over 60 years by hating
your job. "I found what I love to do very early...when I was seven
or eight years old I knew that this particular game really, really
intrigued me. And then I had some great teachers along the way."
3. He collaborates for success Some powerful people want to
control everything themselves. Not Buffett. He recently teamed up
with a private equity firm, 3G Capital, to buy Heinz. Buffett saw
how 3G could help the company and didnt let pride stand in the
2. He thinks in generations Warren Buffett is 83 years old, but
hes running Berkshire Hathaway as if hell be around for another 83
years. Lesser minds would try to squeeze out all of the glory while
they are still around. Berkshires big moves into the energy and
railroad business show Buffetts willingness to think beyond most
1. He never retired Warren Buffett could have easily retired in
this 30s. But he didnt. In fact, an estimated 99.6%of his net $65
billion net worth was accumulated after his 50th birthday!
Warren Buffett and Berkshire Hathaway own nearly 9 million
shares of this company. Click below to learn more!