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Warren Buffett

Terminology

Hedge Fund

Hedge funds operate in a similar manner to mutual funds but tend to take on the more aggressive investing strategies with the goal of achieving higher returns. Hedge funds might incorporate short selling and options into their investing strategies.

Value Investing

Value investing is a bargain hunting investment strategy where stock is only bought when the stocks price is less than what the company is worth.

The Life of Warren Buffett

The Investing Style of Warren Buffett - The Life of Warren Buffett; Picture of a wealthy stock investor walking across the tarmac leaving his car and boarding a private jet plane.

Warren Buffett

Warren Buffett was born in 1930 and is an American businessman and stock investor.

Warren Buffett is a billionaire who consistently ranks in the top five of the world's wealthiest people.

He is acknowledged as one of the most successful investors in history and is considered to be one of the most influential people in the investing world. When Warren Buffett speaks, everyone listens.

The Life of Warren Buffett begins in his hometown Omaha in Nebraska where he was born.

As a child Warren displayed an interest in business and worked in his grandfather's grocery store and amongst other activities he made money by detailing cars, delivering newspapers and some door to door selling.

Warren was brought up in a business environment and this had a significant influence on him. His father owned a stock-brokerage firm and his grandfather owned a grocery store.

In 1947, Warren Buffett initially studied business administration at the Wharton Business School of the University of Pennsylvania for two years.

He then transferred to the University of Nebraska where Warren graduated with a bachelor's degree in Business Administration in 1950.

Warren Buffett was aware of Benjamin Graham and his investing philosophies. One of Warren's favorite books was The Intelligent Investor.

In 1951, Warren moved to New York and enrolled in the Business School of Columbia University where Benjamin lectured and obtained a Master's degree in Economics.

In 1952, Warren returned to Omaha and married his first wife Susan. Warren worked for his father's stock-brokerage firm Buffett-Falk & Co.

In 1953 the Buffett's had their first child, a baby girl whom they named Susan Alice Buffett.

Warren Buffett moved back to New York in 1954 and worked for Benjamin Grahams firm Graham-Newman Corporation. Benjamin offered Warren the role as Benjamin knew Warren from Colombia University.

In the same year the Buffett's had their second child, a boy whom they named Howard Graham Buffett, with the middle name reflecting the surname of Benjamin whom Warren idolized.

Warren Buffett studied under Benjamin Graham

and worked with him for two years

Benjamin Graham retired in 1956 and left the partnership of Graham-Newman Corporation.

Warren Buffett then left the firm and moved back to Omaha where he started an investment partnership called Buffett Associates Ltd.

Over the next couple of years Warren formed another seven partnerships and he extensively utilized the hedge fund style strategies he learnt will working with Benjamin Graham.

In 1957, Warren Buffett bought his house in Omaha where he still lives today

In 1958, the Buffett's had their third child, a boy they named Peter Andrew Buffett.

Warren Buffett first began buying shares in the textile manufacturing firm, Berkshire Hathaway in 1962.

During 1965, Warren Buffett was aggressively buying Berkshire Hathaway shares and finally took control of the company. Warren appointed Charles Munger as Vice President of the newly acquired Berkshire Hathaway.

Berkshire Hathaway was to become a holding company Warren used to acquire stockholdings in other companies using his version of value investing.

In 2004 his wife Susan passed away and Warren re-married in 2006 to his long time friend Astrid.

Warren Buffett has stated that he plans on donating the vast bulk of his fortune to charities with the majority going to the Bill & Melinda Gates Foundation.

Warren's children will only inherit a small portion of his wealth and Warren's reasoning is that if they receive too much money then they will have no ambition to make any for themselves.

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