Warren Buffett: Facts, Philosophy and Famous Quotes
Early Life and Defining Moments
Warren Edward Buffett, born on August 30, 1930, is an American business magnate, investor, and philanthropist. Known as the “Oracle of Omaha,” Buffett is widely regarded as one of the most successful investors in history. He is currently the Chairman and CEO of Berkshire Hathaway, a multinational conglomerate holding company.
Buffett became interested in business and investing from a young age and started his first business at 13. He began his career in finance by working as an investment salesman and later established his investment partnership. In 1965, he took control of Berkshire Hathaway and transformed it into a diversified holding company.
Buffett is known for his value investing approach, focusing on companies with solid fundamentals and long-term growth prospects. He is a proponent of long-term investment strategies and consistently outperforms the market. Buffett is also known for his philanthropy, pledging to donate a significant portion of his wealth to various charitable causes.
With a net worth of over $100 billion, Buffett is one of the wealthiest individuals in the world. Despite his immense success, he is known for his frugal lifestyle and humble demeanor. His investment principles and wisdom have made him a revered figure in the world of finance and a source of inspiration for many aspiring investors.
Interesting Facts
- Warren made his first investment at age 11, buying three shares of Cities Service Preferred for $38 per share. The stock quickly dropped, teaching Warren a valuable lesson about patience.
- Despite his immense wealth, Warren still lives in the relatively modest house in Omaha, Nebraska, that he bought in 1958 for $31,500. He also drives his car and doesn’t have a bodyguard.
- Warren is a lifelong fan of the card game bridge and reportedly spends 8-12 hours a week playing it. He even sponsors an annual bridge tournament in Omaha.
- Growing up, Warren was interested in making money from various small businesses, including selling gum and Coca-Cola drinks and delivering newspapers. By age 16, he had earned over $2,000 (over $17,000 today).
- Warren has long advocated for taxing the wealthy, openly supporting initiatives like raising the inheritance tax and enacting higher taxes on capital gains.
- Despite now being one of the wealthiest people worldwide, Warren pays himself an annual salary of only $100,000 at his company, Berkshire Hathaway.
- Warren is left-handed but was forced to become ambidextrous as a child because his teacher would hit his left hand every time he used it to write.
Core Investment Philosophy
Warren Buffett’s core investment philosophy centers around value investing. The fundamental tenets of his approach are:
- Focus on undervalued stocks: Buffett seeks out companies trading at prices below their intrinsic value. He focuses more on a stock’s valuation and fundamentals than short-term price movements.
- Invest in simple, understandable businesses: Buffett prefers companies with proven business models that are easily comprehended. He stays away from complex tech or biotech stocks with questionable long-term viability.
- Demand a “margin of safety”: Buffett insists on paying significantly less than he believes the stock is worth when buying stocks. This built-in discount helps protect against potential downsides.
- Take a long-term perspective: Unlike traders seeking quick profits, Buffett acquires stocks intending to hold for many years. He mainly cares about the future earning potential and competitive position.
- Tune out market noise: Buffett does not get caught up in broader market swings or economic cycles. He focuses almost solely on finding companies selling at appealing discounts to their intrinsic value.
This back-to-basics value investing style has served Buffett exceptionally well over his decades-long career. The key has been patience and discipline to stick to companies with strong long-term fundamentals and managerial excellence. This measured approach has made Berkshire Hathaway one of the most successful investment vehicles under Buffett’s leadership.
Iconic Lifestyle
Despite being one of the wealthiest people in the world, Warren Buffett leads a notably frugal lifestyle. He still lives in the modest Omaha home he bought in 1958 and drives his vehicle. He bucks typical billionaire stereotypes of splurging on luxury goods or lavish parties, instead focusing his energy on reading and learning.
With his unassuming manner and penchant for modest pleasures like McDonald’s, Coca-Cola, and bridge games, Buffett wins over people through his sheer intellectual firepower rather than flashy bravado.
His relatable oracle status stems from dispensing wisdom without pretense, making advanced investing insights accessible, and living by the prudent financial practices he preaches. Warren Buffett’s lifestyle makes him a more grounded, likable genius billionaire.
Warren Buffett’s Famous Quotes
Warren Buffett’s life story, from humble beginnings to legendary investor advising presidents, offers an abundance of wisdom and motivational quotes on integrity, frugality, and rational thinking.
This collection of Buffett’s most insightful motivational quotes, alongside an overview of his investing philosophy, highlights why he is regarded as the “Oracle of Omaha” for market-beating, life-changing advice.
“Of the billionaires I have known, money brings out their basic traits. If they were jerks before they had money, they are simply jerks with a billion dollars.”
“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”
“Someone’s sitting in the shade today because someone planted a tree long ago.”
“Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.”
“Only buy something you’d be pleased to hold if the market shuts down for ten years.”
“The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with or against the crowd.”
“Games are won by players who focus on the playing field –- not by those whose eyes are glued to the scoreboard.”
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
“Take care of your body. You only get one; even billionaires do not get a do-over in that department!”
Lasting Legacy
Warren Buffett’s uncommon success stems from sticking to timeless fundamentals – seeking undervalued stocks for the long haul, focusing relentlessly on business basics over hype cycles, and living below his means despite amassing a mega fortune.
Dubbed the “Oracle of Omaha,” his value investing acumen and relatable lifestyle make him a globally revered figure. With his sharp intellect rivaling his modest Midwestern mores, Warren Buffett stands out as a master investor and a role model for judicious capitalism.
Conclusion
Apart from Warren Buffett, other entrepreneurial visionaries such as Steve Jobs and Jack Ma have made significant impacts globally. These individuals are celebrated for their innovative thinking and transformative contributions, reshaping industries and inspiring countless people worldwide.
Despite their distinct journeys, they all share an unwavering dedication to excellence and a commitment to driving positive change on a global scale through entrepreneurship.
