Warren Buffett: The Oracle Of Omaha And His Journey To Success

Warren Buffett, known as the "Oracle of Omaha," is one of the most successful investors in history. His remarkable journey from a young boy with a knack for numbers to a billionaire philanthropist is nothing short of inspiring. With a unique investment philosophy that emphasizes long-term growth and value, Buffett has built a legacy that continues to influence aspiring investors worldwide. Born on August 30, 1930, in Omaha, Nebraska, Buffett displayed a keen interest in business and finance from an early age. This passion would eventually lead him to become one of the richest individuals globally, with an estimated net worth that regularly places him among the top billionaires.

Buffett's early life set the stage for his future success. He grew up in a family with a strong financial background; his father was a stockbroker and U.S. congressman, while his mother was a homemaker. It was during his childhood that Buffett began to develop his incredible mathematical skills, often impressing those around him with his ability to perform complex calculations in his head. These formative years played a crucial role in shaping his investment strategies and understanding of financial markets.

As he ventured into adulthood, Buffett's entrepreneurial spirit flourished. He founded his first company at a young age and started experimenting with investments. This early exposure to the world of finance equipped him with invaluable lessons about patience, risk, and the importance of making informed decisions. Buffett's journey is a testament to the idea that with hard work, determination, and a willingness to learn, anyone can achieve great success.

Table of Contents

• Who Is Warren Buffett?
• Early Life
• First Entrepreneurial Venture
• Education
• Berkshire Hathaway
• Later Activity and Philanthropy
• Healthcare Venture
• Personal Life

Who Is Warren Buffett?

Warren Buffett demonstrated keen business abilities at a young age. He formed Buffett Partnership Ltd. in 1956, and by 1965 he had assumed control of Berkshire Hathaway. Overseeing the growth of a conglomerate with holdings in the media, insurance, energy, and food and beverage industries, Buffett became one of the world's richest men and a celebrated philanthropist.

Early Life

Warren Edward Buffett was born on August 30, 1930, in Omaha, Nebraska. Buffett's father, Howard, worked as a stockbroker and served as a U.S. congressman. His mother, Leila Stahl Buffett, was a homemaker. Buffett was the second of three children and the only boy. He demonstrated a knack for financial and business matters early in his childhood: Friends and acquaintances have said the young boy was a mathematical prodigy who could add large columns of numbers in his head, a talent he occasionally demonstrated in his later years.

Buffett often visited his father's stock brokerage shop as a child and chalked in the stock prices on the blackboard in the office. At 11 years old, he made his first investment, buying three shares of Cities Service Preferred at $38 per share. The stock quickly dropped to only $27, but Buffett held on tenaciously until it reached $40. He sold his shares at a small profit but regretted the decision when Cities Service shot up to nearly $200 a share. He later cited this experience as an early lesson in patience in investing.

First Entrepreneurial Venture

By the age of 13, Buffett was running his own businesses as a paperboy and selling his own horseracing tip sheet. That same year, he filed his first tax return, claiming his bike as a $35 tax deduction. In 1942, Buffett's father was elected to the U.S. House of Representatives, and his family moved to Fredricksburg, Virginia, to be closer to the congressman’s new post. Buffett attended Woodrow Wilson High School in Washington, D.C., where he continued plotting new ways to make money.

During his high school tenure, he and a friend purchased a used pinball machine for $25. They installed it in a barbershop, and within a few months, the profits enabled them to buy other machines. Buffett owned machines in three different locations before he sold the business for $1,200.

Education

Buffett enrolled at the University of Pennsylvania at the age of 16 to study business. He stayed two years, moved to the University of Nebraska to finish up his degree, and emerged from college at age 20 with nearly $10,000 from his childhood businesses.

In 1951, he received his master’s degree in economics at Columbia University, where he studied under economist Benjamin Graham and furthered his education at the New York Institute of Finance. Influenced by Graham's 1949 book, The Intelligent Investor, Buffett sold securities for Buffett-Falk & Company for three years before working for his mentor for two years as an analyst at Graham-Newman Corp.

Berkshire Hathaway

In 1956, Buffett formed the firm Buffett Partnership Ltd. in his hometown of Omaha. Utilizing the techniques learned from Graham, he was successful in identifying undervalued companies and became a millionaire. One such enterprise Buffett valued was a textile company named Berkshire Hathaway. He began accumulating stock in the early 1960s, and by 1965 he had assumed control of the company.

Despite the success of Buffett Partnership, its founder dissolved the firm in 1969 to focus on the development of Berkshire Hathaway. He phased out its textile manufacturing division, instead expanding the company by buying assets in media (The Washington Post), insurance (GEICO), and oil (Exxon). Immensely successful, the "Oracle of Omaha" even managed to spin seemingly poor investments into gold, most notably with his purchase of scandal-plagued Salomon Brothers in 1987.

Later Activity and Philanthropy

In June 2006, Buffett made an announcement that he would be giving his entire fortune away to charity, committing 85 percent of it to the Bill and Melinda Gates Foundation. This donation became the largest act of charitable giving in United States history. In 2010, Buffett and Gates announced they had formed The Giving Pledge campaign to recruit more wealthy individuals for philanthropic causes.

In 2012, Buffett disclosed that he had been diagnosed with prostate cancer. He began undergoing radiation treatment in July and successfully completed his treatment in November. The health scare did little to slow the octogenarian, who annually ranks near the top of the Forbes world billionaires list.

Healthcare Venture

On January 30, 2018, Berkshire Hathaway, JPMorgan Chase, and Amazon delivered a joint press release in which they announced plans to team up and form a new healthcare company for their U.S. employees. According to the release, the company would be "free from profit-making incentives and constraints" as it tried to find ways to cut costs and improve the overall process for patients, with an initial focus on technology solutions.

Calling the swelling costs of healthcare a "hungry tapeworm on the American economy," Buffett said, "We share the belief that putting our collective resources behind the country’s best talent can, in time, check the rise in health costs while concurrently enhancing patient satisfaction and outcomes."

Personal Life

In 2006, Buffett, at age 76, married his longtime companion Astrid Menks. Buffett was previously married to his first wife Susan Thompson from 1952 until her death in 2004, although the couple separated in the 197