Warren Buffett (Warren Buffett, August 30, 1930 -), American investor, entrepreneur, and philanthropist, is known as the stock god and is honored as the "Prophet of Omaha". Or the "Sage of Omaha," he currently has a net worth of approximately $62 billion. According to the 2008 list of the world's richest people published by Forbes magazine, he has surpassed Carlos Slim Helu and Bill Gates to become the world's richest man. The world's richest man. Warren Buffett was born in Omaha, Nebraska, USA on August 30, 1930. Warren Buffett has had great investment awareness since he was a child. His love for stocks and numbers far exceeds that of anyone in his family. people. He was full of ideas for making money, and when he was five years old, he set up a street stall at home to sell chewing gum. When he was a little older, he led his friends to the golf course to pick up golf balls used by wealthy people, and then resold them. The business was quite prosperous. When he was in middle school, in addition to working as a newsboy after school, he also collaborated with his partners to rent pinball machines to barber shop owners to earn extra money.
In 1941, when he was just 11 years old, he jumped into the stock market and bought his first stock.
In 1947, Warren Buffett entered the University of Pennsylvania to study finance and business management. But he felt that the short-selling theories of the professors were not enough. Two years later, he transferred to the University of Nebraska-Lincoln and obtained a bachelor's degree in economics within one year. In 1950, Buffett applied to Harvard University but was rejected. He was admitted to Columbia University Business School and studied under the famous investment theorist Benjamin Graham. Buffett was at home under Graham. Graham opposed speculation and advocated evaluating stocks by analyzing factors such as a company's profitability, assets, and future prospects. He imparted a wealth of knowledge and know-how to Buffett. The talented Buffett soon became Graham's favorite disciple. In 1951, at the age of 21, Buffett received a master's degree in economics from Columbia University. When he graduated, he received the highest A+. In 1952, Buffett married Susan Thompson. Their parents were old friends for many years. While studying at Northwestern University, Susan and Buffett's sister Roberta were roommates in the same dormitory. When Buffett dropped by to visit her and propose, Susan left college and married him. Mrs. Buffett grew up just a block and a half from Buffett's current home.
In 1957, the funds under Buffett's control reached US$300,000, but it rose to US$500,000 by the end of the year.
In 1962, the capital of Buffett Partners reached US$7.2 million, of which 1 million belonged to Buffett personally. At that time, he merged several partnerships into one "Buffett Partners". The minimum investment amount is expanded to $100,000. The situation is a bit like China's private equity funds or private investment companies now.
In 1964, Buffett's personal wealth reached US$4 million, and at this time the funds under his control had reached US$22 million.
In the spring of 1966, the U.S. stock market was booming, but Buffett was restless. Although his stocks were soaring, he found it difficult to find cheap stocks that met his standards. Although the crazy investment in the stock market has brought windfalls to speculators, Buffett remains unmoved because he believes that stock prices should be based on corporate performance growth rather than speculation.
In October 1967, the funds under Buffett’s control reached US$65 million.
In 1968, Buffett's stock achieved its best performance in history: an increase of 46%, while the Dow Jones Index only increased 9%. The funds under Buffett's control rose to US$104 million, of which US$25 million belonged to Buffett.
In May 1968, when the stock market was booming, Buffett informed his partners that he was retiring. He then gradually liquidated nearly all of Buffett Partners' stock.
In June 1969, the stock market plummeted, gradually turning into a stock market crash. By May 1970, every stock had dropped by 50% or more compared with the beginning of the previous year.
Between 1970 and 1974, the U.S. stock market was like a deflated rubber ball, lifeless. Continued inflation and low growth pushed the U.S. economy into a period of "stagflation." However, Buffett, who was once disappointed, was secretly overjoyed because he saw that wealth was about to roll in - he discovered too many cheap stocks.
In 1972, Buffett focused on the newspaper industry again because he discovered that owning a famous newspaper was like owning a toll bridge, and any passerby must leave money to pay for the passage. Starting in 1973, he secretly eroded the Boston Globe and the Washington Post in the stock market. His intervention greatly increased the profits of the Washington Post, with an average annual growth rate of 35%. Ten years later, Buffett’s $10 million investment had appreciated to $200 million.
In 1980, he spent US$120 million to buy 7% of Coca-Cola's shares at a price of US$10.96 per share. By 1985, Coca-Cola changed its business strategy and began to withdraw funds and invest in beverage production. The unit price of its stock has increased to US$51.5, a five-fold increase. As for how much money has been earned, the amount can stun investors around the world.