Video:Profile of Warren Buffetwith Linda P. Jones
Warren Buffett is one of the richest men in the world because of his financial strategies. Watch this video to learn more about Warren Buffet's history and investments.See Transcript
Transcript:Profile of Warren BuffetHello, I’m Linda P. Jones, Wealth Mentor from LiveWealthyAndSmart.com, and I’m here today on behalf of About.com to talk with you about someone you’ve probably already heard of: his name is Warren Buffett.
He’s one of the richest men in the world and in 2008, Forbes named him to that list, with his fortune estimated to be worth about 38 billion dollars. Most of his fortune came from his investment in Berkshire Hathaway, and his other investments in well-known American brands that you’ve heard of before, like American Express, Wells Fargo, Coca-Cola and many others.
Warren Buffett Started Investing at an Early AgeWarren Buffett was born on August 30, 1930 in Omaha, Nebraska, to a dad who was a stockbroker turned Congressman and a mom who was a housewife. He was the second child, and the only boy, out of three children. And, at a young age he had a propensity already to be a great investor, by selling individual bottles of Coca-Cola for a profit, having a stellar newspaper route, and buying his first shares of stock at age 11. After graduating high school, he went on to school at Wharton for two years, and then came back to Omaha, to the University of Nebraska to finish and graduate. Then he went on to Columbia, where he would meet his future mentor and professor, Benjamin Graham, the author of Security Analysis, the classic book on investing.
After Columbia business school, Warren Buffett returned to Omaha, Nebraska, where he went to work for his father’s stock brokerage firm. Soon after, he met and married Susie Thompson. Then, they moved to New York, and he worked for Benjamin Graham, his mentor, as a stock analyst. And he accumulated his own personal capital.
Buffett is Most Associated With Berkshire HathawayIn 1956, he started Buffett Associates, with 7 family members and friends, and capital of $105,000. By 1962, it was worth 7 million dollars. It was also the year that he met his friend, attorney and business partner Charlie Munger. By 1969, Buffett dissolved that partnership because he couldn’t find any bargains to invest in, but he did keep Berkshire Hathaway and one other company, Berkshire being the company we most associate with Warren Buffett. Warren Buffett continues to use Berkshire Hathaway to grow his wealth and other shareholders’ wealth.
By Sticking with Stocks as They Grow, Buffett Built His WealthOne of his main strategies is to invest in consumer companies with strong brands, where people repeatedly buy their products. He stays away from technology companies that might become obsolete. Think: Gillette, not Microsoft. Some of his other strategies are to invest in companies as a business, to look at strong managements, and to buy them at the right price, where he can get them below market value, where there’s a margin of safety. Warren Buffett is proud to invest in what others consider boring companies, hold onto them forever, and consistently grow his wealth.
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