Warren Buffett was born in Omaha (US) in year 1930. His father was working in a stock broking firm as a salesman. Due to 1929 great depression he lost his job after that with a small capital he has started his own stock broking firm. When other kids were playing in garden, Warren Buffett likes to read books and watching financial reports he was happy with doing that .
When Warren Buffett was 8 year old he has read a book name one thousand ways to make one thousand dollar, from that 1000 idea’s Warren Buffett was attracted with one pinball machine idea so he has researched everything about pinball machines cost, profit and etc. Finally he bought pinball machine and put that machine into the saloon. So the people who are in waiting will play this game. After getting profit he invest that money inti pinball machine business and typed with other saloons warren Buffett sold his business for $1200 in his child time.
After that he has done many small business like selling newspaper, selling door to door coca cola, chewingum and etc. At the age of 14, he has bought 40 acre land from his savings.
Warren Buffett earned huge profit after learning Benjamin Graham’s value investing and became millionaire. Value investing means buying under valued stocks, in the value investing they were buying those stocks which are trading below it’s intrinsic value.
Warren Buffett has bought Berkshire Hathaway‘s shares in 1962 for the first time, at that time Berkshire Hathaway was big textiles business and Berkshire Hathaway’s business were performing too poor. Company was selling their meals and from those money company were repurchasing shares from shareholders. That’s why Mr. Buffett bought many stocks till 1964. And when company has sold it’s all meals and repurchasing shares, they asked mr.buffett that at which price do you want to sell shares? So Buffett replied at $11.50/ share and manager has agreed to buy shares at this price but when Mr. Buffett got offer letter the price was mentioned $11.375/ share. Warren Buffett was very upset with this cheating behavior of the management and continued to buying shares till Mr. Buffett got control of the management. And when Mr. Buffett got control he has fired those cheater manager from the company.
Mr. Buffett has closed his partnership firms business in 1996. And became chairman of the Berkshire Hathaway. When he has not seen any growth in company’s textiles business. He made berkshire Hathaway’s holding company, through this they invest in different different company’s stock like Washington post, coca cola ,Geico etc. And closed company’s textiles business completely and also entered in insurance sector.
Warrent Buffett has purchased first share at the age of Eleven. They always says “I made my first investment at age eleven, I was wasting my life up until then“
Warren Buffett has read all those books available in his father’s office after reading that books he was attracted to the investments, he made his first investment in cities services, He bought share for him and for his sister at the price of $38 when it reaches $40 he has sold all stocks and booked profit from them. After few time that stock reached $200 that’s why they always says “Successfull investing takes time, discipline and patience, no matter how great the talent or efforts somethings just takes time” that’s why they always invest for a long term,he bought Washington post shares in 1973 and he earned more than 9000% returns.
When he buy shares he always think like owning that business that’s why he only invest in those business which he understands well. From 1988 he has bought coca cola shares, and still holding that shares. He is 7% shareholder of the coca cola company.
Prof. Benjamin Graham said in his book intelligent investor,
“Investing is most intelligent, when it is most businesslike”
Mr. Buffett says this nine words are most important words written on investment.
Mr. Buffett has always followed Philip Fisher and Benjamin Graham‘s philosophy.
They always says “I’m 15% Philip Fisher and 85% Benjamin Graham “
Philosophy of Benjamin Graham is buy undervalued stocks
And Mr. Philip Fisher’s philosophy says invest in quality business.
As he told he is a combination of philip Fisher and Benjamin Graham . His own philosophy is ” Buy quality stocks at lower valuation”
Warren buffet’s 2 rules
Rule no. 1 never lose money
Rule no. 2 never forget rule no. 1
Warren Buffett always read books about 5 to 6 hour / day. He is 87 year old and still when he is investing he thinks for the longterm investment.
In his childhood he always told her sister that I will become world’s richest person. And in 2008-2009 he became richest men and since many years he is at 2nd and 3rd rank in world richest person’s list.
Still he lives in that house which he has bought in year 1958, he drives his car never hired driver for him. From the year 2000 to till now he has donated $46 billion (about 34,04,000,000,000 Indian rupees) he is biggest charitable person, he is still investing because investing is his passion he has earn 90% of his money after his 50year age.
So 87 age is just a numbers don’t give up think for a long run , hold for a long you will definitely earn money from stock market
According to Warren Buffett loosing money in stock market is about to impossible.
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