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In this Ppt, you will get to know about the Interesting Facts and also about the interesting life of Warren Buffets
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Introduction to the Great Investor • Warren Buffet was born on August 30, 1930, in Omaha, Nebraska. • His father, Howard Buffet worked in a stock broking firm. But due • to great depression, he lost his job. • Later, with his savings, he opened his own Stock broking Firm. • Howard called Warren, a fireball, as Warren did so many businesses • at such a small age. • Warren gives his success credits to his father, whose guidance helped him a lot. • 1st investment was in the company called Cities Services, where he bought the • shares at the price of $38. • He is now, known as the Oracle of Omaha, with a net worth of $89.9 billion, • and being the Chairman of Berkshire Hathaway.
EARLY CHILDHOOD BUSINESSES • Warren, was always interested in reading, playing with numbers • and doing small businesses. • He once told her sister that he will become World’s richest man, • and yet he achieved it. • He started a Pinball business at the age of 7. He set up the pinball • machines at every Barber shops and gained major profit from it. • Later, he sold his business for $1200. • He also distributed the Washington Post, sold Coca-Cola and • Wrigley’s chewing gum door to door. • At the age of 14, with his savings he bought 40 acres property.
EDUCATIONALQUALIFICATIONS • At the age of 16, he enrolled himself in the Wharton School at the University of Pennsylvania. • Later he was moved to the University of Nebraska in Lincoln, and completed his Bachelor of Science degree in business administration. • For post-graduation, he applied in Harvard University, but he got rejected. • After his major research, he enrolled himself in the Columbia University for his post-graduation. • In this university he found his mentor, Benjamin Graham.
WHO IS BENJAMIN GRAHAM? • Benjamin Graham created the concept of VALUE INVESTING. • Later, he came to be known as The father of Value Investing. • Warren, followed his philosophy which was analyzing the financial statement of the company and then calculating the intrinsic value of the company. • Warren also worked as a Security analyst at Graham-Newman Corp., a partnership firm of Benjamin Graham.
What is the concept of VALUE INVESTING? • Value investing mean buying the undervalued stocks or buying shares when the intrinsic • value is low. • Intrinsic value is justified by the company’s assets, earnings, dividends and its earning • power.
BERKSHIRE HATHAWAY • Berkshire Hathaway was a textile company, which slow and steadily was losing • its business in the economy. • Later, they began to give away their textile mills and started re-purchasing the • company’s share from the shareholders. • In 1962, Warren Buffet started buying the shares of the company for the first time. • He bought the shares as he figured that the management was planning to close the • company, and when company will sell out their remaining textile mills, then the • company will surely buy back the shares, and then he can get a better price. • Till, 1964 he continued buying a good amount of stocks.
Warren made a deal for $11.50 for selling out his share, and the company also agreed with the price. • But later company’s management tried to trick him by providing him with an agreement of $11.375. • Due to which Warren got angry for being cheated and rejected to sell his shares and started buying • more stocks. • Later he gain full control over the company. • Warren always says that “The greatest enemies of the equity investors are the expenses and emotions”. • This decision was made emotionally, but he converted his mistake into a big business. • He made Berkshire Hathaway into a Holding Company.
WHAT IS A HOLDING COMPANY? WHAT ALL COMPANIES HE INVESTED IN? • Holding company simply means, a company which buys the share of another company, • or in other words, invest in other companies. • Through Berkshire Hathaway, Warren invested in companies like – Washington Post, • Coca-Cola, Glico, Dairy Queen, BNSF etc. • He also started investing in insurance companies. • He closed the textile business of the Berkshire Company.
In 1988, Warren started buying the shares of Coca-Cola and brought 7% stakes • He still holds the shares of Coca-Cola. • Since, he delivered Washington post newspapers and Wrigley’s chewing gum, Warren • came to know about the product quality, business and customer loyalty. • He continued to follow the philosophies of Benjamin Graham and Philip Fisher. • Benjamin said “Investing is most intelligent when it’s most like business”, while • Fisher said “Invest in Quality Business”.
WARREN’S FAMOUS PHILOSOPHY AND LESSONS FOR INVESTMENT • His most famous philosophy, which combines both the philosophies of Fisher and Benjamin is, • “Buy quality stocks at lower valuations”. • His most famous rules are – RULE no. 1- Never lose money RULE no. 2- Never forget rule number 1. • His famous quotes are- “If you don’t find a way to make money while you sleep, you work • until you die”. • “Be fearful when others are greedy, and be greedy while others are fearful”. • “If you are not thinking about owning a stock for 10years, don’t even think about • owning it for 10 minutes”.
WARREN’S LIFE APART FORM BEING AN INVESTOR. • Warren, now is of 88 years old. Many people say that why is he working when he is so rich? • Well, for him, Age is just a number, and investing is his passion. • He also loves to read a lot, as he spends almost 7-8 hours reading. • His he happily married, and has three children: Susan Alice Buffet, Howard Buffet and Peter Buffet. • He has almost donated $46 billion, and is considered as the most charitable person. • He adores his business partner, Charlie Monger.
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