On Warren Buffett

As the “Oracle of Omaha,” the richest, the most idolized, the most respected businessman in the world celebrates his 90th birthday, we bring the story of his life for you. From $38 to $78.9 billion, from a paperboy to the wealthiest businessmen, his life has become the most inspirational and imitated in the world for young entrepreneurs. His approach to value investing, combined with his influence over the companies he supports, has seen him generate significant profits since he entered the financial corridors in 1965.

Early Life

Warren Buffett was born with business in his blood. His father, Howard, was a stock broker, and the Y-chromosomes carried the skill through. Since childhood, he has demonstrated a knack for finance and business. He would spend most of his time with his father at his firm, reading books, and listening to people. At the very young age of 11, he made his first investment, buying three shares of Cities Service Preferred at $38 per share. However, he couldn’t make much profit from it. By the age of 13, Buffett was running his own business as a paperboy selling his own horseracing tip sheet. In the same year, he filed his first tax return, claiming his bike as a $35 tax deduction. He had taken his degree in business from the University of Nebraska at the age of 20 and came out of college with $10,000 from his childhood businesses. Later, He received his Masters in Economics from Columbia University.

Berkshire Hathaway

In 1956 Buffett started his firm Buffett Partnership Ltd. in his hometown, Omaha. He was successful in identifying undervalued companies. One such enterprise was Berkshire Hathaway. Despite Buffett’s successful partnership, the founder of Berkshire Hathaway dissolved it in 1969. He phased out the textile manufacturing division. Even then, Buffett managed to spin seemingly low investments into gold, most notably purchasing Solomon Brothers’ in 1987. He stuck to the textile business in the beginning, but later, he too phased it out due to meager profits.

Buffett Partnership Ltd. was very successful, making huge profits hitting over $104 million. He made the most prominent investment of his career until then in 1971. He bought a company named “See’s Candy,” for $25 million in cash through Berkshire Hathaway. It was a long way from the textile business, which initially operated in, but this type of investment would soon become a trademark.

Philanthropy

It was late in 2006, Buffett announced that he would be giving his entire fortune to the charity, committing 85% to Bill and Melinda Gates Foundation. It was after 2010 Buffett and Gates announced that they had formed The Giving Pledge campaign to recruit more wealthy individuals for philanthropic issues.

In 2016, Buffett launched Drive2Vote, a website aimed at encouraging people to vote in his Nebraska community as well as to assist in registering and driving voters to polling booths. He leans Democratic, and has shown no hesitation in despising Trump on multiple occasions.

Health Care and Beyond

In 2018, Berkshire Hathaway, JP Morgan Chase, and Amazon announced a new healthcare company for their U.S employees. The press released stated that it would be free from profit-making incentives and constraints as it is trying to find ways to cut costs and improve the overall care of patients with an initial focus on technology.

In 2011, he attended a ceremony in the White House, where he had received Presidential Medal of Freedom, the highest civilian honor in America. President Obama awarded it said the people being awarded were “ some of the most extraordinary people in America and across the world.”

Since 2000, Buffett had donated around $46 billion, making him the most charitable billionaire. His lifestyle of frugality shows how money is a little value for him other than being a measure of his success in what he calls “the game.”

Unlike his contemporaries at the Wall Street and in the Silicon Valley, he has exemplified how billionaires must lead a life in modern times. While his endeavors are not perfect, the aim to improve and personify a personality of a giving billionaire has endured him to many a heart and mind. We hope that his example motivates his peerage into making a better use of their net worths.

-Rohith