Biography: Warren Buffett
The Life of America’s Most Successful Investor
Warren Buffett (1930-present) is the CEO of Berkshire Hathaway and is currently the third-richest person in the world.
Warren Buffett, apart from being the world’s most successful investor, is the CEO of Berkshire Hathaway and is worth an estimated $59.6 billion. Despite his wealth he still lives in the house in Nebraska he bought for $31,500 in 1958. Additionally, he is a great philanthropist and has announced that his entire fortune will go to charity upon his death.
Early Life
Warren Buffett was born in Omaha, Nebraska on August 30, 1930. He was quickly identified by his family and others as being exceptionally good with numbers. In his youth he made money by reselling cokes and delivering newspapers. At the age of 13 he filed his first tax return and deducted $35 for his bike as a business expense. Later, as a senior in high school, Buffett purchased a used pinball machine with a friend and set it up in a local barber shop.
Education
Warren Buffett graduated from Woodrow Wilson High School in 1947 and then attended the Wharton School at the University of Pennsylvania from 1947 to 1949. He went on to earn a B.S. at the University of Nebraska in 1950 and a Masters in Economics at Columbia University in 1951. It was at Columbia that Buffett met his mentor Benjamin Graham and began to form his investment strategy.
Early Business
In 1954 Benjamin Graham offered Warren Buffett a job at his partnership. However, two years later, Graham dissolved the partnership and Buffett moved back to Nebraska and created his own partnership: Buffett Associates Ltd. In the next five years Buffett built up Buffett Associates Ltd. while also forming new partnerships. Then, in 1962, Buffett merged all of his partnerships and began aggressively purchasing shares of Berkshire Hathaway.
Berkshire Hathaway
By 1965 Warren Buffett had accumulated enough Berkshire Hathaway shares to take control, at which point he named Ken Chase as President. At this time Berkshire Hathaway stock was worth about $15 a share; today the stock is trading around $140,000 per share. Since he took control of Berkshire Hathaway, Buffett has not only used it as a mechanism for investment, but also as an umbrella company for subsidiary companies including World Book Encyclopedia and G.E.I.C.O.
Philanthropy
Warren Buffet has already given a large portion of his earnings to charitable organizations. His largest contribution has been to the Bill and Melinda Gates Foundation which aims to improve healthcare and reduce poverty around the world. Having already given a significant amount of money to this organization, Buffett plans to leave 83% of his fortune, or $30 billion, to the charity upon his death.
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