Introduction: Warren Edward Buffett is one of the successful investors in the world. He is the world’s seventh- wealthiest person in August 2020. US$78.9 billion net worth of his. He was born on 30 August 1930 in Nebraska city in Omaha.
The early business of Warren Buffett: Warren Buffett had start do business in childhood. In childhood when the child was playing this time Buffett thinking for small business. One day Buffett had reading a book one thousand ways to makes $1000. Here he got pinball business. Buffett and friend jointly buy a pinball machine for $25. Then they setting this pinball machine in the salon. This pinball business was running and Buffett gets a profit. By this profit to use Buffett setting one by one pinball machine. Next year Buffett had sold this business for $1200. Next time Buffett has done many small businesses such as newspaper sell, magazine sell, chewing gum sell. Coca-cola sells door etc. But Buffett’s family condition is good. From this business earn a lot of profit Buffett buy 40 Accra land. When buffet complete of the college study in this time he had saving $9800.
Buffett Investment career: Buffett had applied for a post-graduate course at Harvard University. But he was rejected. Then he had searched many colleges and universities. In this time he had seen Prof. Benjamin Graham and Prof. David don teaching at Columbia University. Buffett had firstly read “Security analysis” book which was Prof. Benjamin Graham and Prof. David don jointly writing. Buffett’s influence this book. To learn to invest Buffett had admitted to Columbia University. This university admission for Buffett was life-changing for the next time. Prof. Benjamin graham was a crater for value investing. Next time everybody called her Father of value investing. After Buffett value investing had learned he had gone to Benjamin graham’s company for a job without a salary. But Prof. Benjamin had rejected. After two years Prof. Benjamin had a job offer for Warren Buffett of his partnership company. After two years Buffett had to work as a security analyst and his skills improve in his investing. In 1956 Prof. Benjamin Graham had retired at this time closed their partnership company. Then the warren buffet comes back from their hometown of Nebraska. At this time Buffett’s saving deposit had $174,000.
In Nebraska Buffett had started a partnership firm. Buffett follows the value investing of Prof. Benjamin graham’s theory and earns more profit. One-time Buffett go-to millionaire. Value investing means buy undervalue a stock. Under-value stock means less value of stock real value. Real value means company assets, dividends, earnings, and earning power. Prof. Benjamin graham can any company by financial statement analysis gets of Intrinsic value. Many timeshare values were down from intrinsic value. By value investing Which share was buying that share value was down from intrinsic value. In 1962 Buffett buy Berkshire Hathaway’s share. At this time Berkshire Hathaway was a textile company and their business was running too bad. Management of Berkshire Hathaway one by one sell the textile company. This sold money again repurchase Berkshire Hathaway’s share from shareholders. Buffett buys Berkshire Hathaway shares this time because Buffett thinks Management of Berkshire Hathaway was closed the factory and another factory when sold, this amount use again share repurchase. At this time Management of Berkshire Hathaway will be paying a high rate for his shares. For this thinking Buffett until still 1964 huge quantity Berkshire Hathaway share stored. One-time Management of Berkshire Hathaway goes to Buffett to purchase from their share. Buffett offers per share 11.50$ and agrees to the Management of Berkshire Hathaway. but payment time Management of Berkshire Hathaway pays 11.375$ per share. Buffett had angry for this chit. Then Buffett buys more Berkshire Hathaway shares When Management of Berkshire Hathaway full control came to Buffett’s hand. Then out to the Management from Berkshire Hathaway. In 1969 Buffett closed his partnership business and chairmen in Berkshire Hathaway company. Then convert this company to a holding company. Holding company means this company purchase various company share. By Berkshire Hathaway Holding company Buffett buys Washington posts, coca-cola, GEI GO share. Then Buffett acquires stock one by one company such as Katharine Graham, Wesco Financial, Buffalo Evening News, Buffalo Courier-Express. ABC. Capital Cities. Buffett believed long term investment in share. Salomon Inc 12% share buy Berkshire Hathaway Holding company. Buffett starts buying In The Coca-Cola Company stock in 1988. He had bought up to 7% in coca-cola company share for $1.02 billion. This coca-cola share is held now to the Buffett.
Prof. Benjamin graham’s writing book Intelligent investor was Investment is most intelligent when it is most businesslike. All-time Buffett follows Prof. Benjamin Graham and Philip fisher’s policy. Buffett says he is 15% Philip fisher and 85% Benjamin graham. Prof. Benjamin graham Policy was to buy undervalued stock and Philip fisher policy was to invest in quality business. But Buffett adds two policy and his policy was to buy the quality stock at a lower valuation. Buffett all-time buy this company share when this company face time problems, in this time it shares rate is undervalued. He earns a lot of profit again invest various businesses. Present time Buffett company has 60 company shares. Always Buffett follows two rules. (1) Never lose money. (2) Never forget rule number -1.
Warren Buffett best speech for Investment :
- Invest in what you know…and nothing more.
- Never compromise on business quality
- When you buy a stock, plan to hold it forever
- Diversification can be dangerous
- Most news is noise, not news
- Investing isn’t rocket science, but there is no “Easy Button”
- Know the difference between price and value
- The best moves are usually boring
- Low-cost index funds are sensible for most investors
- Only listen to those you know and trust
Self-made billionaire Warren Buffett who is CEO of Berkshire Hathaway age was 90, August 30, 2020. He gave six advice for investing :
1)Long term think : If you invest any company share firstly you see the company performing present times and invest long term. It will be 10 years to 20 years.
2)Stay the course : If market is down and you are not panic and not sell of your investment. Collection the news and stay with your investment.
3)Marry the right person : Buffett the best advice is you do marry the right person
4)Buy index funds : Investment has no guarantee but buffett say chose to buy the index funds. because it cheap rate and its fund is not depend of only one company.
5)Invest in yourself : If you want to develop your life, you must invest of yourself such as tanning, earn knowledge, reading book,
6)Remember that money isn’t everything: Buffett say money is not everything and love is very important. It will be unconditional. If you try to give it you get twice as much,
Warren Buffett 8 Saving Money Tips :
1.)Use the power of saving : Buffett says, “Don’t save what is left after spending; spend what is left after saving.”
2. Spend Wisely: Today invest $95 in stock market index mutual fund. Per years annual return 9%. 27 years wait, or until retirement. Worth of this investment will be $950.
3. Save For the Unexpected : Warren Buffett keep cash on hand for the unexpected.
4. Use Debt Carefully and Limit What You Borrow : If you are paying on your credit card debt 18% interest and invested in the stock market On money earning 9%, You actually losing 9%
5. Think Long Term : Start a small amount investing in every month on long term, The money will grow speedily.
6. Warren Buffett Money-Saving Investing: If you investing start $10000 per year and your age is 25. It is a 7% annual return. When your age is 50, It amount will be $ 732000 dollars.
7. Maintain a Modest Lifestyle: Buffett lives in a middle-class neighborhood of large housing development in Northern California.
8. Invest in Yourself : If you can advance in your job through then spend the time, education, money and effort to get a certificate or degree.
Donation : Warren Buffett tops list of the biggest donation in America. Its amount is $15 billion in 5 years.
Calculation: Warren Buffett is the father of investors. New and old investors of the world follow the Buffett rules. By these investors earn a lot of money. If every people from young age apply the investment policy of Warren Buffett then he will be successful. These people are not dependent on jobs.