The Success Story of Warren Buffett: From Paperboy to Billionaire Investor
1. The Early Years (1930s–1950s)
Born in Omaha (1930): Showed business acumen early—sold chewing gum, Coca-Cola, and newspapers door-to-door.
First Investment (Age 11): Bought 3 shares of Cities Service Preferred at $38 (sold too early, learned patience).
Columbia University: Studied under Benjamin Graham, father of value investing.
2. Building Berkshire Hathaway (1960s–1980s)
Textile Mill to Empire: Took control of failing Berkshire Hathaway (1965), pivoted to insurance (GEICO) and investments.
Investment Philosophy:
"Buy wonderful businesses at fair prices."
"Be fearful when others are greedy, and greedy when others are fearful."
Key Acquisitions: See’s Candies (1972), Nebraska Furniture Mart (1983).
3. The Oracle of Omaha (1990s–2000s)
Tech Avoidance (Initially): Missed early tech booms but avoided the dot-com crash.
Big Bets: Coca-Cola, American Express, Apple (later).
2008 Financial Crisis: Invested $5B in Goldman Sachs at peak panic, earning billions.
4. Legacy & Modern Era (2010s–Present)
Philanthropy: Pledged 99% of wealth to Gates Foundation & family charities.
Recent Moves: Invested in Apple, Snowflake, and renewable energy.
Net Worth: ~$120B (2024), consistently top 5 richest globally.
Buffett’s Success Secrets
✔ Long-Term Thinking – "Our favorite holding period is forever."
✔ Margin of Safety – Never overpay, even for great companies.
✔ Compound Interest – Started investing as a teen; patience built his fortune.
✔ Frugality – Still lives in the same Omaha house bought in 1958 for $31,500.
Key Lessons
Invest in What You Understand (Avoided tech until he studied Apple’s moat).
Reputation Matters – Berkshire’s integrity attracts deals others can’t get.
Ignore Market Noise – "Price is what you pay; value is what you get."