Warren Buffett Bio and Quotes

Warren Buffett

Warren Buffett
Warren Buffett

Warren Buffett Investment Strategy

The Warren Buffett Way

[UPDATE 3 : Warren Buffett is putting together a cartoon series called "The Secret Millionaire's Club" to teach kids about finance - something that schools should be doing in my opinion - That's All Folks !]

[UPDATE 2 : The winning bid was US $1,680,300.00 - which is about $500,000 less than last year's auction - so a bargain for someone ! ]

[UPDATE : The Warren Buffett Online Lunch Auction is underway - if you want to have lunch with Warren Buffet you can bid for the privilege over at that online atucion place. Last year the winner paid $2.1 million and so far this year the bidding is $135,678 and there is 2 days 9 hours adn 52 minutes left - all the money goes to the Glide Foundation charity]

Warren Edward Buffett was born in Omaha, Nebraska on August 30, 1930. He is currently the second richest man in the world behind his friend Bill Gates. He is also the most famous and most successful investor ever. In addition to this he is a philanthropist and great American businessman. At the moment he has an estimated net worth of around $40 billion, down from $60 billion and is still the the largest shareholder in and Chief Executive Officer of Berkshire Hathaway. This article was first published here - Warren Buffett Quotes

His success when it comes to investing in stocks is legendary. He is not infallible, as recent events have shown, when he invested in oil when oil was at its peak at $147 a barrel but his current net worth is proof that his decisions are more often right than wrong. He is not interested in the short-termhe is famous for long-term buy and hold 'value investing', saying that if you aren't prepared to own a company for ten years then you shouldn't own it for ten minutes. He prefers to buy stocks in companies that are well run and holds them for the long-term (i.e. decades). Over time, he argues, the markets always go up, so it makes sense to hold on to good investments.

He pays himself an annual salary of around $100,000, which is very small compared to the millions that other CEOs pay themselves and he still lives in the house he bought in Omaha, Nebraska for $31,500 back in 1958. The house today is valued around $700,000, which is not enormous for a man of his vast wealth.

Recently he has made a name for himself as known philanthropist, after announcing in 2006, that he would be donating his enormous fortune to charity. 83% of it has been set aside for the Bill & Melinda Gates Foundation. In June 2006 he made a donation of approximately 10,000,000 Berkshire Hathaway Class B shares to the Foundation, which at the time were worth approximately $30 billion, making it the largest charitable donation ever. The Foundation will receive 5% of the donation in July each year.

He filed his first income tax return at the age of 13 and charged his bicycle as a work expense at $35.

He was married to Susan Thompson in 1952 and they remained married until the year of her death 2004, although they had been living separately since 1977. In 2006 he married Astrid Menks his long-time companion. It was Susan Buffett herself that had brought about the meeting between Warren Buffett and Astrid Menks before leaving to pursue her career as a singer.

Warren Buffett has three children but he will not be leaving them a "significant proportion" of his wealth. He has said on this subject "I want to give my kids just enough so that they would feel that they could do anything, but not so much that they would feel like doing nothing."

Update : Goldman Sachs has just been charged with fraud by the SEC and its stock price has slumped by 14% - as Warren Buffett has a sizeable interest in Goldman Sachs then his investments will have been affected too

Warren Buffettt's Book Recommendations

Which book is most representative of his thinking ? Warren Buffett himself says it is : The Essays of Warren Buffett, by Warren Buffett, edited by Larry Cunningham He also recommends The Intelligent Investor chapters 8 and 20.

Books on Investing and Investing Tips recommended by Warren Buffett


The Intelligent Investor, by Ben Graham ("the most important investment book, especially chapters 8 and 20")
Common Stocks and Uncommon Profits, by Phil Fisher ("I highly recommend his books, especially the early ones")
John Bogle on Investing: The First 50 Years, by John Bogle ("Any investor who owns or is thinking of owning shares in a fund should read this book cover to cover.")
The Smartest Guys in the Room, by Bethany McLean (recommended by Buffett in his annual letter in 2003)

Recently a complete biography of Buffett was written by Alice Schroeder  entitled The Snowball

Famous Buffett quotes :
"Life is like a snowball. The important thing is finding wet snow and a really long hill"
"[Gold] gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head. "
"You only find out who is swimming naked when the tide goes out." (Particularly apt at the moment when a lot of so-called emperors have been found to be wearing no clothes)
"Someone's sitting in the shade today because someone planted a tree a long time ago"
"If you're in the luckiest 1 per cent of humanity, you owe it to the rest of humanity to think about the other 99 per cent" (A comment he made on a tax system that lets him pay less tax than his secretary)
"I try to buy stock in businesses that are so wonderful that an idiot can run them. Because sooner or later, one will."
"Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results."
"A girl in a convertible is worth five in the phonebook. "
"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful. "

He was greedy back in October 2008 when he started buying stocks again, after years of being out of the market. He bought too early and people have criticized him for it, but he is a long-term investor and no doubt he will be proved right.

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Comments 20 comments

Singular Investor profile image

Singular Investor 5 years ago from Oxford Author

Tha's cool Lea - I hope you have made plenty of money following Warren Buffett's way of investing


lea86 profile image

lea86 5 years ago

His genieus on investing and financial matters really inspired me a lot.


Singular Investor profile image

Singular Investor 6 years ago from Oxford Author

Yes Warren Buffett is a wily old goat - his kids are not poor nevertheless


prakash 6 years ago

it is really good said that he will not leave all money for their sons he will leave some money and than they will earn from it.


Singular Investor profile image

Singular Investor 6 years ago from Oxford Author

Hi Crstofr - thanks for the comment, my point is that if they paid their workers more then they would have less for themselves, given that there are only so many millions you can spend in a lifetime why do they insist on keeping billions for themselves. I know some of them decide to give money to charity, but why not just give it to the people who work for them instead ? What's the point of one person having so many billions while others, who work 8 or 10 hours a day as well, have to get by with minimum or average wages. I don't understand the strange mentality that says its better to make money out of the people who work for you then give it away to charities - who are they trying to kid ?


crstofr profile image

crstofr 6 years ago from Orlando

Great hub with one slight problem. I don't really believe that Billionaire's make their money by not paying their folks enough. I think that by and large, they make their money by hard and smart work. I've actually known a few billionaires and many of them, like Sam Walton are kind, normal people - just very smart, very determined, and very hard working folks. Now if you were talking about Soros, I'd agree or Billionaires from other countries where they do rob from the people as in Sadam or in Mexico where the gov't rigs a monopoly so a person can control, say the phone system in the whole country.

There are many billionaires who have given a lot of money away. Gates would be the worlds richest man again if he didn't give so much of his away.

Keep the good hubs coming. I look forward to the next.


Singular Investor profile image

Singular Investor 6 years ago from Oxford Author

Thanks for dropping by and the compliments - 252 hubs already you've been busy !


entertianmentplus profile image

entertianmentplus 6 years ago from United States

Well done hub and good read thanks for sharing.


Singular Investor profile image

Singular Investor 6 years ago from Oxford Author

I doubt Warren Buffett would pay that sort of money to anyone - but these are guys with a lot of money so a few hundred thousand is not a big deal, plus sometimes they share the cost with friends and all the money goes to charity too. The guys who pay seem quite happy so presumably they must think it is worth it, but it does seem like crazy money.


Hub Llama profile image

Hub Llama 6 years ago from Denver, CO

You have to wonder what Mr. Buffet would think of someone paying that kind of money to have lunch with him. Is that really a good investment? :)


MrSpock profile image

MrSpock 6 years ago

He is the master! If you read the book by his former daughter in law, you'll be able to pick up on the skillset he uses to make purchases. It's quite fun when you put it to use as well.


Singular Investor profile image

Singular Investor 6 years ago from Oxford Author

Hi Glassvisage thanks for the comment and the compliments - Warren Buffett is certainly unusual as far as billionaires go - well done on all the great hubs and so many followers !


glassvisage profile image

glassvisage 6 years ago from Northern California

This is a great Hub! I never knew so much about him... and his annual salary! I love that you update this, too. A lot of people don't do that. Don't worry - you'll get to 50 Hubs soon enough! :)


Singular Investor profile image

Singular Investor 7 years ago from Oxford Author

Hi Mitch - Yes Warren Buffett is certainly very sucessful ! He is also a bit special - he asked for a book about accounting and auditing for Christmas when he was 7 years old !


Singular Investor profile image

Singular Investor 7 years ago from Oxford Author

Hi Mitch - Yes Warren Buffett is certainly very sucessful ! He is also a bit special - he asked for a book about accounting and auditing for Christmas when he was 7 years old !


Mitch King profile image

Mitch King 7 years ago from Wilsoville, OR, USA

We can all learn a lot from Buffett. He not only makes a lot of money but he even contributes a lot to charity.


Singular Investor profile image

Singular Investor 7 years ago from Oxford Author

You should have made it into a link


LongHaul$ 7 years ago

Gotta love the man and his advice, which is why I was shocked when I stumbled upon (literally) this great site!

www.warrentedclothing.com


Singular Investor profile image

Singular Investor 7 years ago from Oxford Author

Jennifer - yes he's far from perfect but he knows his onions when it comes to making money from investments. I find billionaires giving to charity an odd notion, as by and large they made their billions by not paying their employees enough in the first place, but for some reasons they seem to prefer to make billions then hand some of it back in the form of charitable donations. But still it may be better than hanging on to it all.


Jennifer Bhala profile image

Jennifer Bhala 7 years ago from Upstate New York

I've seen Warren on the TV and he seems like a very smart and kind person. Doesn't seem greedy or mean. Sill to donate to big pharma though? We need to be donating to natural health research not more toxic drug research.

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