WARREN BUFFET is one of the most
Influential Business Leader of the time. He is known as the “Oracle of Omaha”
and he is one of the most successful investors of all time.
was born in Omaha, Nebraska U.S. on Aug
is the CEO of Berkshire Hathaway and
one of the most influential investment gurus and most respected Philanthropist
and businessmen in the world.
real time net worth is 93.2 B as of January 2018.
has done B.A.- University Of Nebraska Lincoln and M.S.- Columbia University.
Hathaway owns more than 60 companies which include one of the famous battery maker
Duracell, restaurant chain Dairy Queen and insurance company Geico.
is the son of the U.S. congressman Howard
Buffet, who was an American businessman and investor and his mother, Leila Stahl Buffet, was a homemaker.
the age of 11, he first bought the stock and at 13, first filed taxes.
is also known as the man of his words and commitments as he committed to giving
more than 99% of his fortune to charity and already given about $32 billion so
announced the giving pledge with his friend Bill Gates in 2010, asking
billionaires to donate half their wealth to charitable causes.
Earlier Strategic techniques:
The most of the Warren Buffet’s
fortune is derived from the 18 percent economic interest in Berkshire Hathaway,
which is an invest company traded publicly that returned 20.8% annually from
1965 to 2016, which is based on Berkshire’s annual report released Feb.25, 2017.
According to a January 2, 2018, Form
4 filing with the Securities and Exchange Comission, Buffet owns 282,511 Class
A shares and 129,657 Class B shares.
Buffet’s investing techniques and principles have earned him the title “world’s
greatest investor”. He bought enough stock, which placed himself on the top
boards of companies. In the early age of
time when he was not quite a millionaire, he ran an investment
partnership which bought into a company called SanBorn Map Company, where he was one of the board member.
you become the board member, you get the responsibilities to guide the
organization’s direction and the hiring or replacing of CFOs and CEOs. Which
requires a huge potential to do so because you are at the top management level
of the company and it’s market reputation and growth epends up on your
strategies and decisions made with the board members and at the same time
depends how to implement those techniques in the organization. For which,
Buffet played a vital role in whichever company he invested or bought to take
it to the next level.
is completely meticulous about the company he buys and never sit back to count
the money company made instead he performs the possible taskhe could, which
emphasizes the fact that for being wealthy, you should be the owner i.e. if you
want money a bit sooner, then the best way is to be involved in ownership of a
Buffet- “Buy and Hold”!
According to the media and financial
advisors, Buffet is an example of why you should buy and hold. He used to buy
for some specific reasons and when those reasons are no more present, he
generally sells. Which classied him as a “value investor.”- person who buys
stocks that have a low price to earnings ratio. He usually looks for good
prices, competitive advantage and excellent management. For example, in 1996,
he sent a letter to shareholders, in which he cited Sears, GM and IBM as the great
companies, but could not stay competitive in their market place, so they
suffered and companies would have been sent to dump out of a portfolio.
Buying a stock and holding it
forever was not Buffet’s cup of tea. Out of the 20 companies he invested, he
still holds the Berkshire Hathaway, which is due to only it’s name and the
remaining 19, he no longer owns. Which suggests that instead of holding it for
long or even for a shorter span, just look at the figures and make a smart move
that may enables one to achieve greater heights.
Impactful Strategies of Warren Buffet in investing:
One of the most wise and successful
investors of modern era suggested various techniques and strategies which
Investing in yourself:
Learn the fundamentals of stock market
analysis by reading various articles and books such as “Security Analysis” which
is also called as Bible for investors.
To become familiar with the financial
reporting and accounting, keep an eye on the annual reports of companies.
Focus on the Long-Term and the value
of Perfect Mangement:
Focus on industries that shows stability
and will continue to be vital to the economy into the future.
Look for the companies with a long term
future in products that people use today and will continue to use tomorrow.
Diversify your Holdings:
Spreading your risk is always a wise
decision to follow.
Be like an Owner:
Be sure to keep an eye on the company’s
mailing list for announcements of new products and financial results.
Be Patient while trading the stocks.
To conclude, The legendary investor
at 86 years old, still lives in his old modest home in Omaha and drives every
morning to his office to manage Berkshire Hathaway, which is the fifth largest
public company in the world. He followed the principles of integrity, decency
and discipline that boosted him to pile up a fortune that led him to becoming
the largest philanthropic donation in history. He started as a child to become
the legendary investor as an ambitious, numbers-obsessed boy and reached a
height of one of the richest and most influential and respected business
leaders in the world.