Warren Edward Buffett was born on August 30 in 1930. He is generally known as an investor, a business magnate, and a philanthropist. However, most of the global investors consider him as the greatest investor in the twentieth century.
Buffett is the Chairman and Chief Executive Officer of Berkshire Hathaway. He has been consistently among the wealthiest people of the world, getting the top rank in 2008 and third rank in 2011. Buffett brought new ideas to the investing field with his principle of value investing philosophy.
In spite of his immense wealth, he has been very frugal in his personal life, a trait that should be emulated by everyone. He might have amassed wealth but he does not even feel that it belongs to him.
He has pledged that he would give away 99% of the fortune that he has earned for philanthropic causes, mainly through the Gates Foundation of Bill Gates of Microsoft. The three main trustees of Gates Foundation are Bill Gates, his wife Melinda Gates, and Warren Buffett.
Savings and Investment Practice Even in Childhood
Warren Buffett was not exactly born in a poor family but his thinking on savings and investing very early in life is a reflection of lessons every human being should foster. His father was a representative of the U.S. Congress for four terms. Even though he was born in Omaha, his family moved to Washington D.C. in 1942, when his father was elected to the Congress.
Buffett went to Alice Deal Junior High School and his graduation was in 1947 from Woodrow Wilson High School. The picture in his senior yearbook contains the statement, “like math; a future stockbroker”.
Even while he was attending school, he showed a keen interest in making money and saving it. He worked for sometime in the grocery store of his grandfather’s, also selling chewing gum, weekly magazines, and Coca-Cola.
He delivered newspapers, sold stamps golf balls, and detailed cars during high school. He filed his first income tax return at the age of 14 in 1944 taking a deduction of $35 citing the use of his watch and bicycle in paper delivery.
In the next year, he bought a used pin ball machine with a friend for $25 and they put it in a local barber shop. Within a few months, they had installed and owned several pin ball machines in various barber shops around town.
Early Interest in Stock Markets
Warren Buffett’s father himself owned a brokerage company, but Buffett spent several days in the lounge of another regional stock brokerage quite near to his father’s brokerage office. When he was just 10, he visited the New York Stock Exchange.
He purchased three shares for himself and three for his sister in Cities Services Preferred when he was 11 years old. He invested the money he earned during school years in one business that his father owned and also purchased a farm in which a tenant farmer was working.
Concentration on Business Education
Buffett joined Wharton Business School in the Pennsylvania University in 1947 and shifted to the University of Nebraska-Lincoln, where he obtained a Bachelor of Science degree graduation in business administration.
When he learned that Benjamin Graham, the creator of the eminent book, “The Intelligent Investor” and professor David Dodd, both popular as experienced securities analysts were teaching at Columbia Business School, he joined there and obtained a masters of science degree in economics in 1951.
Saving and Investing to Amass Wealth
By the age of 20 Buffet had saved $9,800, which is nearly $94,000 if adjusted to inflation in 2012. He accepted a job in the partnership business of Benjamin Graham in 1954 with a starting salary of $12,000 per annum. When Graham retired in 1956, Buffett had saved more than $174,000, equivalent to $1.47 million if adjusted to inflation in 2012.
He created his own venture as Buffett Partnership Ltd. in 1956 in Omaha. He went on to create multiple more partnerships becoming a millionaire in 1962. In 1962, he started purchasing the shares of Berkshire Hathaway, a textile manufacturing firm and finally became its full owner.
However, he closed the partnership in 1966 and sold the last mill in 1985 but retained the company name. He went on purchasing several newspapers and other companies to become a billionaire in 1990 and replaced Bill Gates as the richest man on earth in 2008.
You Could be Next Warren Buffett
When you study the dozen books written on the life of Warren Buffett, you would be able to understand that anyone can become a billionaire like him if that individual scrupulously adapts the saving and investing principles of Buffett.
At the same time, Buffett has also enlisted the mistakes he has made in his life, which you can learn from to achieve success and wealth.