As a typical teenager, I picture senior citizens as lovely, sweet members of our society, not ruthless business people blinded by the aim and need for money. The combination of both includes the infamous Warren Buffet, a man who is also commonly known as the Oracle of Omaha, which is a name which changes the sphere of finance and investment. However, unlike many would expect, Warren Buffet became a billionaire at 56 in 1986, breaking financial records and societal expectations. Essentially, Warren Buffet changed the game and the way we view finance. Buffet became a pivotal figure in the finance industry for his risky and innovative investment strategies and persona.
Regardless of his later life success, Buffet was already profiting and making a name for himself in his early life. At 11, Buffett purchased his first stocks; this odd investment for an ordinary 11-year-old boy ironically provided a slight investment profit. Buffet further took a notable interest in finance throughout his childhood and teenage years. Later on, he attended Wharton, yet shortly left after one year due to the incomprehensible boredom it caused him. Therefore - wanting a substantial challenge -, he applied to Harvard Business School, but unfortunately for a cocky young adult like Buffet, he was rejected. Yet this did not hinder him from becoming the 5th wealthiest person alive. Alternatively, Buffet attended Columbia, where he climbed onto the New York Financial District and conquered his banking jobs before firmly cementing himself as an undeniable figure on Wall Street.
Although he did not rack up all his success alone, one of the key mentors in Buffet's life was Benjamin Graham, an economist and investor who contributed significantly to Buffet's unique and strange investment strategy. Moreover, Some fundamental principles in Buffett's strategy include his desire to value investment. He purchases securities with prices he believes are unjustifiably low based on their intrinsic worth, which entails purchasing a stock to hold it for a sustained period to receive long-term returns. Key examples of this strategy are Berkshire Holdings, Buffet companies, and his position in Coca-Cola. By 1988, Buffet's firm had purchased over $1 billion worth of stock; they have never sold a share since, and their stake is now worth $23 billion, which occupies around 9.2% of the corporation. Allowing for an approximate 2300% return on investment, I know - crazy.
Furthermore, Buffet secures his investments by always considering the margin of safety and hedging his positions smartly. This protects him from any immense losses that could affect his portfolio. Another unique feature of Buffets contributing to his prodigious success is his down-to-earth character and humble personality. Even today, with his net worth exceeding $120 billion, Buffet resides in the same house in Omaha, Nebraska, which he purchased for $31,500 in 1985. This view transcends his company's values, Berkshire Holdings, which retains a high moral standard and is transparent in activity, all in a coherent effort to create an honest, stable company.
Buffet has reached tremendous success; as a 93-year-old, his net worth now stands at $121 billion, and he has been awarded extensive medallions, such as the Presidential Medal of Freedom. Although Buffet has had many incredible investment stories producing astounding returns, it is also important to acknowledge his unfortunate investments that caused a substantial loss of profit. One of the most notorious losses in his life was the one he experienced in the financial crash of 2008. Buffet lost $25 billion, which even for him is a surprisingly large sum; his company Berkshire Hathaway also lost its triple-A rating. Not only was it a devastating loss for his company, but the circumstances of the 2008 crash left the entire financial district in the red, and no one was spared. However, Buffet's continuous margin of safety in his investments has enabled him to continue his steady rise to the top.
Warren Buffet is a man who has shaped the world of investment and finance, changing the way we view risk-taking theory. He has many tremendous successes and a few notable failures; after all, he is only human. A quality contributing to his success is his ability to learn from his mistakes and his humble demeanour, which is applied to every aspect of his business and personal life. Not only is Buffet's success a motivation to the many who envy his prestige, but it also highlights the importance of character, contrasting wildly to the personas that stereotypically dominate Wall Street. Buffet is no 'Wolf of Wall Street' yet, amassed a substantially larger fortune than most could ever dream of.
Written by Annika Bjerregaard and Aurore Lebrun
Loving this!
loving the Analyst 🔥🔥
i want him as my grandpa, really interesting article!
riveting stuff!!