Warren Buffett started out not with really great prospects. But very early in his life, he had discovered the value and place of money. He got himself involved in many odd jobs. One of them was that he was a mail boy for sometime. After his graduation from the university, he worked briefly for a stock broking firm. Definitely it must have been from there he picked up the knowledge about successful investing, especially with regard today.
Warren Buffett today is known “The Oracle of Omaha” Born in 1930, in Omaha, Nebraska, United States, Warren Buffet is one of the very few billionaires who have amassed wealth solely through investing in stocks. He is the Chairman of Berkshire Hathaway, a successful investment company with incredible returns over the years. For instance, a $10,000 investment in Berkshire Hathaway in 1965 would be worth 50 million dollars today (2001 estimate). This has made Buffett, the second richest man in the world at a net worth of over $36 billion dollars (2001).
The success of Berkshire Hathaway, plus the impressive successes that Buffet has recorded attracts investors and shareholders alike to Omaha every year. As a matter of fact, Chairman Warren Buffett calls his annual shareholders’ meeting the “Woodstock Weekend for Capitalists,” but investor Michael Cleveland has a better analogy: “It’s a religious revival, and Buffett is our evangelist!” For years shareholders have flocked to Omaha each spring to hear on to up, Buffett preach the virtues of investing in and holding strong, proven businesses.
As the incredible returns piled so have conversions to Buffettism. countless other investments numerous to mention. However, Buffett has major stakes in Disney, Coca Cola, Gillette and businesses he doesn’t understand, and so he passes on as part of his principle, he refuses to invest in industries Warren Buffett tumbled a bit on this list, mostly because of his computer, software and dot-com stocks. Over the 1990s, aversion to investing in technology stocks.
But the “Oracle of stocks melted. Even with some battered picks, Buffett’s Berkshire Hathaway still grew stronger. technology Omaha” has apparently had the last laugh.
His Famous Quotes
1. “The first rule is not to lose. The second rule is not to forget the first rule.”
2. “If past history was all there was to the game, the richest people would be librarians.” Don’t depend on the past to make judgments about an investment. Look at the future earnings of the investment. Consider its potentials and the managerial ability and vision of those in charge.
3. “Risk comes from not knowing what you’re doing.” Don’t invest in an industry or business you do not understand.
4. “Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it Learn how to buy into the market when price is low and possibly sell when prices are high (i.e. when you are investing in the short-term). However, Buffett advises that you invest for the long term. (Culled from www.fortunes.com) Investment Style Buffet’s number one goal for investing is to never lose any money regardless of market conditions. He believes in buying stocks trading near their tangible asset value.
He also avoids companies that have excess debt. Buffet then looks at the companies’ track record for Return on Equity (ROE) and tries to predict where the company is going to be 10 years from now. He believes in long-term investing and also advises that any investment that would keep one anxious and awake in the middle of the night was not worth the strain.
Bill Gates’ Comments About His Billionaire friend, Warren Buffett
“My friend Warren Buffett, who’s often called the world’s greatest investor, talks about how grateful he is to live at a time when his particular talents are valuable.
“Warren says if he’d been born a few thousand years ago, he’d probably have been some animal’s lunch. But he was born into an age that has a stock market and rewards Warren for his unique understanding of the market. Warren Buffett, though in his seventies, still remains comfortably the second richest man in the world by investing solely in the stocks of companies. With the practice of focus regarding his investments, Buffett has become not only a success, but also a living proof of what investments can do in any individual’s life.
The second richest man is a proof of the power of investing Investing in good instruments over a long period of time with high returns is the secret of wealth creation.
One of the skills that every human being requires to live a quality life on earth is called money skills. Developing money- making skills puts an dividual above their peers. It makes you outshine your mates. But unfortunately there’s no formal arrangement where people are taught how to make, manage and multiply wealth. As a matter of truth, our institutions of higher learning do not see it as a need to teach their students about money, this is the reason the subject is not part of their curricula.
I am not talking about the definition of money here, neither am I referring to the characteristics of money. I’m only interested in letting you know that if you want to experience financial freedom, where you don’t have to work in your retirement years, and you desire to live a quality lifestyle with your family, you have to take personal responsibility for your wealth today ,Our tertiary institutions every year produce graduates who storm the labour market demanding for a place in the market.
We see a labour market that is stretched to the limit. We see a labour market where supply exceeds demand. Thus companies are left with no choice but to dictate the terms. And some of these terms are not in the interest of the job seeker.