With How Much Money Did Warren Buffett Start?

With How Much Money Did Warren Buffett Start?

When we speak about Warren Buffett, the questions most people might be asking are: With how much money did Warren Buffett start? How Did Warren Buffett Get Rich? How did Warren Buffett start investing? I will take you through the journey of American investor and Berkshire Hathaway CEO Warren Buffet.

Warren Buffett, CEO of Berkshire Hathaway, who is now 89 years old, represents for many people a myth. He is the example of a person everyone should follow in their life, not only because he made himself a billionaire starting from zero, but because he did it while living a completely modest lifestyle.

With How Much Money Did Warren Buffett Start?

With How Much Money Did Warren Buffett Start?

Born in Nebraska in 1930, Warren Buffett began his ascent to the peak of finance at a very young age. His first deal dates back to the age of six, when he bought six cases of Coca Cola from his grandfather (he will own a huge amount of Coca Cola stocks later in his life), reselling them to earn five cents a bottle.

His first investment came five years later when he bought six Cities Service stocks for $38. This answers the first question: With how much money did Warren Buffet start?

Precisely on this occasion, he showed the talents of a true investor by resisting the temptation to sell them when they fell to $27 and giving them only when they reached 40 dollars. After he sold these stocks, the price rose to more than $200 per share.

When he was 14 years old he started selling Washington Post (he will also own this stock in the future) newspapers door-to-door. After that, he invested $1200 of savings into a 40-acre farmland.

At the end of high-school, Warren and one of his friends bought a pinball for $25 and decided to put it in a nearby barbershop. Few months later, they will own three pinball machines in three different locations and they will sell the business to a war veteran for $1200.

After he graduated from high school, his father was pressing him to attend college. Young Warren didn’t like that idea but he started attending classes in the Wharton School of Finance and Commerce (Pennsylvania). Buffett hated it and claimed that he knows much more than professors. He quit the Wharton School and went to University of Nebraska where he graduated in only three years. In 1950 he applied at Columbia University where he meets Benjamin Graham who teaches him about investing.

The strategy he adopted was (and continues to be) apparently very simple: buy undervalued companies which are competitive at the same time, and keep the stocks of such companies until the market decides to recognize the true value of those companies. This is the real secret of Warren Buffett’s success: his ability to understand the companies which are undervalued but they have a big potential to rise steadily and over time.

It seems that every company Warren Buffett decides to invest in simply turns into gold. When talking about investing, Warren has rarely missed a shot, and it is thanks to this that he built his billionaire fortune. He even managed to become the richest man in the world, according to Forbes. This happened in 2008.

How did Warren Buffet get rich?

Among the companies in which it currently has significant holdings, we should mention Coca Cola (21.5% of the equity portfolio), IBM (17.6%) Wells Fargo (15.99%), American Express (10.81%), Procter & Gamble (7.74%) and many others.

All managed through his holding Berkshire Hathaway, a former textile company acquired by Warren Buffett himself, who then transformed it into the current multinational conglomerate. By the way, Bill Gates, his great friend, is the second-largest shareholder in Berkshire Hathaway.

Among the secrets of his success, Warren Buffett also does not hesitate to mention another indispensable assumption, namely the ability not to panic, which was demonstrated precisely during the crisis triggered by mortgages in 2008. During this crisis, he was investing in a large number of companies in difficulty, allowing them to catch their breath. Because of this, he managed to make over ten billion dollars in profits, with a totally exceptional return on investment (almost 40%).

To better understand these numbers, it will be enough to remember that the performance in question exceeds (by more than three times) the one obtained by the government through the Troubled Asset Relief Program – the bailout plan launched in 2008 by George W. Bush, which stopped at the profitability of about 12%.

Warren Buffett (also known as “the Oracle of Omaha”) also host the so-called Woodstock of capitalism – the meeting of Berkshire Hathaway shareholders that gathers more than 20,000 visitors from all over the world.

Despite his immense wealth and undisputed success, Warren Buffett is an extremely humble person and lives a very simple and modest life.

To understand this, he still lives in a house that he bought in 1957. His annual salary is around $100,000 a year (he has a fortune 600,000 times greater), and answers the phone in person. And in a world where stars and pseudo and fake rich people ride in Ferrari, he still orders his favorite food in McDonalds for not more than $3.

Additionally, Warren Buffett is known for his philanthropy: in 2006, he decided to donate 85% of his immense personal fortune to the Bill & Melinda Gates Foundation. Also, when he dies, his assets will be divided between five charitable foundations.

This is the story of Warren Buffett, a very ambitious person, but at the same time very simple. A person who knows and embodies certain lost values. As a person who dedicated his life to both hard work and helping others, Warren Buffett will be remembered as one of humanity’s greatest benefactors.

The above piece has answered the questions; How did Warren Buffett get rich? With how much money did Warren Buffett start? How did Warren Buffett start investing? You now have an idea of the journey he’s been through to be where he is. His story can inspire us to keep pushing to be the best.

How Rich Is Warren Buffett?

According to the Forbes ranking (2020), Warren Buffett has net worth of approximately $79 billion and is the fourth richest person in the world.

Warren Buffet’s journey to success is one that should inspire every aspiring investor out there. Warren Buffet’s story can also inspire anyone who wishes to become successful in any area of life. He experienced a few challenges in some of his investments, but he had a consistent strategy that worked out well for him.

As an aspiring investor, you should start with small steps and come up with a genuine and consistent strategy that will work for you. You should also understand that most business empires were not built in a day.

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