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Warren Buffett. Secrets of successful investment.

Warren Buffett. Secrets of successful investment.

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* The translation was made by using Google Translate.

Money is never enough. But! If not working, a lot of them never will be.

Warren Edward Buffett is a billionaire, its largest shareholder brilliant investor. Quoting him, admire him, listen to him, and years of experience are used to make strategic decisions. The head of "Berkshire Hathaway" and owner of the second place according to Forbes. Rumor has it that Buffett even owns the gift of prophecy, for which he received the nickname "the Oracle". Its influence on the of venture capital funds is really impressive. Collapse or prosperity — to solve it.

Well, okay, we should not get ahead of ourselves, let's start with the beginning of deep.

August 30, 1930, United States, Nebraska, Omaha. Was born here and from an early age juggling stock W. Buffett. The boy's father was a stockbroker and politician (Howard Buffett — a Republican U.S. Congressman elected in 1942), because to pester investors in old clothes, bare feet, like Steve Jobs, Warren was not possible. The parents provided a very stable Foundation and he used it fully.

Since childhood, quickly memorized multi-digit numbers fluently manipulating numbers in mind. Even today, the billionaire doesn't use a calculator. Something "old-fashioned" businessman became the best in the business. Now its capital is 77 billion $, which is multiplied thanks to a remarkable intelligence and innovative approach to work.

 

Each piece of paper with a picture of another American President, is earned through hard work. I wonder how Buffett did it?

W. Buffett first earnings.

The future largest investor was born with a commercial streak. He earned his first money at the age of 6: he bought six cans of Coca-Cola at his grandfather's store for 25 cents, and he sold it for 50.

At the age of 11, with a move to Washington, the boy became interested in his father’s business: he borrowed money from him, first made a purchase of 3 shares of the Cities Service Company for $ 38 each. As the saying goes: "The first pancake is a lump ...". Shares fell to $ 27. A little later, they jumped up to $ 40 and, with joy, Warren immediately sold them in order to avoid a loss. Because of the usual impatience, the young financier lost $ 160 on each stock, as soon the price rose to 200 per unit. The case has become an excellent lesson. Since then, he every time shows maximum patience, waiting for the most profitable moment. Yes, it takes years, but the result is worth it!

Trainee with boss salary.

At 13, there was financial experience number 3 - the Washington Post mail delivery man. And yes, the third attempt has become much more successful than the previous one. Having improved the personal mailing route, the boy served many times more subscribers. Thus, his monthly salary reached the earnings of the department director himself.

 

«Never depend on one source of income. Invest in a second source of income

 

 

Having accumulated an impressive amount, Buffett acquired a land plot, while continuing to earn money on rent and honestly pay taxes. Moreover, he mastered the gambling business, which consisted in buying old pinball (not paintball!) Machines, then repairing and installing in the most visited places. Business brought a good income, th.

 

«I enjoy the process much more than income, although I have learned to put up with them too.

 

He was not so interested in paperwork as in the process of making money. Maybe because he is very good at it, who knows?...

Education W.Buffett. Investment experience.

1947 - admission to the University of Pennsylvania. A year later, after leaving the Howard Buffett Congress, the whole family returned to Omaha and the guy continued his studies at the University of Nebraska-Lincoln (Bachelor of Business Administration, 1950).

A year later, Buffett again showed interest in the stock market, the desire to study at Harvard grew, but his candidacy was rejected due to his young age. After receiving approval from Columbia University, Warren studied with the experienced manager, the shark of investment funds of that time B. Graham, where he received the main knowledge of value investment (he received the qualification of Master of Economics in 1951).

 

After completing his studies, the future tycoon was asked to work at least for free at Graham, but he refused. Only one way out: the sales manager in the father’s company, Buffet Falk. The former mentor eventually changed his mind and offered Warren to work at Graham Newman. After the death of his father, he received an impressive inheritance, which helped significantly increase personal capital.

Financial market titan.

1956 left a bright trace in the life of W. Buffett. With the participation of friends and relatives, he creates an investment company, Buffett Associates, with a starting capital of $ 105,000. His mind has always functioned in the right direction, because each shareholder received a stable% of profit, in six months the insurance company doubled.

Ten years later, the investor began actively buying up the shares of an almost bankrupt textile factory. 3 years, 49% of the company and the managerial chair led to the prosperity of the retraining enterprise (investment and insurance) of Berkshire Hathaway, which was estimated at $ 360 billion.

 

«National Indemnity» became the next weighty purchase by the investor for 8.6 million. Next was the insurance company GEICO for 17 million. These were his last dividends, since all profits were successfully reinvested.

Buffett Collection.

In the seventieth fund Buffett Partnership Ltd eliminated, while Buffett himself took over 42.7% of the shares. Three years later, he acquired the Washington Post package for 11 million. Yes, the newspaper has become painfully dear since childhood. In the 87th, he buys the next “family” - shares of Coca-Cola (spends more than a billion dollars). World-famous titans Gillette, McDonald's, American Express, WaltDisney, General Re, KIA Motors, Phillips, also owned the BNSF Railway and others. , did not stop there, the collection multiplied.

 

In 2010, Buffett gave more than 30 billion to charity. At that time, the amount exceeded half of his condition.

The 2011th tycoon nevertheless decided to buy IBM securities. He always remained an opponent of investing in an incomprehensible business, but he still donated ten billion.

The “guru” of the investment market until the age of 31 managed to become a millionaire. He tends to see the prospect in an unprofitable business. To everyone's surprise, for a small period, each time he managed to intelligently raise a loss-making enterprise to a competitive level.

How does he manage to succeed? 

1. Always focused on long-term cooperation. The average tenure of shares is 10 years.

2. Deeply poking around in activities.

3. Adheres to the policy of monetary incentives for directors, stimulating their desire to work and develop the company.

4. Never invests in an incomprehensible business, shares money only when it is well oriented in the field of activity. For the same reason, half of my life did not invest in nanotechnology.

5. Makes purchases after a powerful crisis on the stock exchange, when other investors run away from securities.

With every cent earned, Warren Buffett owes a personal intuition, a commercial sense: "... pick good stocks at the right time and keep them as long as these stocks stay good."

One of the last successful projects of the billionaire was a deal with AIG, PPC, American Airlines and Southwest Airlines, Apple, the purchase of the energy giant Oncor for $ 18 billion ...

 

If we talk about personal qualities of Buffett, then this is an expressive and very economical person, with a good sense of humor. He lives in the same house for $ 30 thousand, he drives a car. He likes to joke in public and who does not know the rich man in the face, would never have thought that before him was Warren Edward Buffett. The man simply does not give the impression of such a wealthy man. The wardrobe is not at all different from the clothes of the average American.

«I buy expensive suits. They just look cheap on me

 

A little stinginess is present, but what he does not spare finances, so it is on the jets. In the bustle of billions of deals, he finds time to play bridge, songs in his own performance and public speaking on the ukulele.

 

Who will get the billionth state of "The Seer of Omaha"?

Buffett almost did not help the children, and if they asked for a loan, they always left a receipt for short-term debt repayment.

In 2012, Buffett was diagnosed with prostate cancer. The testament states that relatives will receive only 1% of the total wealth. 99% of the value goes to the Bill and Melinda Gates Foundation.

Every year, the billionaire organizes a charity auction where the winner gets a three-hour lunch with his person. The first lunch (2000) was estimated at $ 25,000. Not once trades reached six-digit numbers.

Do you dream to talk with the investment genius in person - save up millions and read the business blog of the company “NYiGDE?”!

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