Who is Warren Buffett? Warren Buffett is a world renown investor known as the "Oracle of Omaha" and for being one of the richest people on the planet. He is currently the President and CEO (Chief Executive Officer) of Berkshire Hathaway Inc, an American multinational conglomerate holding Company. This Biographical essay will examine the investing life of Warren Buffet. When most children were out playing, Warren Buffet was making deals and money. At the age of Six Warren bought six packs of Coca-Cola to flip them for a nice profit. When Buffet was 11 years old he bought his first stock at 38 dollars a share to sell it later at the price of 40. He later regretted the decision to sell it so soon because it skyrocketed to 200 a share.
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Investopedia defines value investing as "The strategy of selecting stocks that trade for less than their intrinsic values. Value investors actively seek stocks of companies that they believe the market has undervalued" (Investopedia, 2003). Value investing gained prominence in 1934 with a book called "Security Analysis." Written by Benjamin Graham. This was the beginning of value investing and the style that Warren would most gravitate towards. Benjamin Graham would later write another book on the subject called "The Intelligent Investor" which became a better version of the first. At Columbia, buffet learned some investing fundamentals that changed his life. 1) stocks are business 's and needed to be treated as such. People can over focus on a stock 's volatility and forget they own a business. 2) A Margin of safety must be used. This is the notion that if you buy a business at what it should cost (not at a deal), and there is trouble in the future for that company and the share price drops your already at a loss. 3) "Mr. Market," referencing the stock market is an erratic creature that offer 's different prices on different …show more content…
Their friendship would span the next 40 years. Even though they are separated by distance that doesn 't stop the two from calling each other almost every day. "Charlie Munger has been vice-chairman of Berkshire Hathaway since 1979. Essentially, Munger acts as the right-hand man and investment partner of legendary investor Warren Buffett" (Investopedia, 2015). After a period of 10 years, Buffet 's fund returned over 1,156% when the Dow Jones Industrial average only grabbed a 122% gain. Buffett would later close the opportunity to newcomers to invest in his fund. Buffett saw no chance in the current market to grab the value 's he had previously been able to and ended up closing the partnership. At this time, Warren owned 29 Percent of Berkshire stock but would later go on to gain control of 49% of the company. During this time, Buffett would make some moves that would clean up a troubled Berkshire by naming some new people into power. Cash would soon flow into Warren 's companies giving him the Capital to Make Berkshire larger than
Investopedia defines value investing as "The strategy of selecting stocks that trade for less than their intrinsic values. Value investors actively seek stocks of companies that they believe the market has undervalued" (Investopedia, 2003). Value investing gained prominence in 1934 with a book called "Security Analysis." Written by Benjamin Graham. This was the beginning of value investing and the style that Warren would most gravitate towards. Benjamin Graham would later write another book on the subject called "The Intelligent Investor" which became a better version of the first. At Columbia, buffet learned some investing fundamentals that changed his life. 1) stocks are business 's and needed to be treated as such. People can over focus on a stock 's volatility and forget they own a business. 2) A Margin of safety must be used. This is the notion that if you buy a business at what it should cost (not at a deal), and there is trouble in the future for that company and the share price drops your already at a loss. 3) "Mr. Market," referencing the stock market is an erratic creature that offer 's different prices on different …show more content…
Their friendship would span the next 40 years. Even though they are separated by distance that doesn 't stop the two from calling each other almost every day. "Charlie Munger has been vice-chairman of Berkshire Hathaway since 1979. Essentially, Munger acts as the right-hand man and investment partner of legendary investor Warren Buffett" (Investopedia, 2015). After a period of 10 years, Buffet 's fund returned over 1,156% when the Dow Jones Industrial average only grabbed a 122% gain. Buffett would later close the opportunity to newcomers to invest in his fund. Buffett saw no chance in the current market to grab the value 's he had previously been able to and ended up closing the partnership. At this time, Warren owned 29 Percent of Berkshire stock but would later go on to gain control of 49% of the company. During this time, Buffett would make some moves that would clean up a troubled Berkshire by naming some new people into power. Cash would soon flow into Warren 's companies giving him the Capital to Make Berkshire larger than