Mr. WARREN EDWARD BUFFETT

Mr Warren Buffett receiving the Medal of Honor from American President Mr Barack Hussein Obama

                  Mr Warren Buffet dubbed as the "Worlds greatest Money maker" is a legendary value investor & philanthropist.He turned Berkshire Hathaway into a financial engine that powered what would become the world's most successful holding company making his way to the top of the Forbes World's Billionaires.He has current net worth of US$ 53.5 Billion.I would be blogging just a few important things that helped him in being a successful investor.

                 He was born in Omaha in 1930 to Howard Buffet and Sussan Buffet.Mr Howard Buffet was initially working as a stock broker and lost his job during The Great Depression. He was introduced to stock market investing in early school days by means of his father. He had a liking for business as he delivered Coca cola to customers from his grandfather's grocery store. While still in high school he was successfully making money by delivering newspapers,selling stamps and lost golf balls.He filed his first income tax return in 1944 at the age of 14.
                   In 1945, in his  high school, Buffett and a friend spent $25 to purchase a used pinball machine, which they placed in the local Barber shop. Within months, they owned several machines in different barber shops. At the age of 15 he invested the money he had saved (117.75$) in three shares of city service. Later his father went onto being an US Congress senate and moved to Washington D.C. Here he started saving money as a news paper delivery boy for The Washington Post. He made 5000$ delivering paper and as you would have guessed it by now,he again invested in shares.

                 He applied for Harvard Business School where he got rejected. This in turn turned out to be a blessing in disguise as he joined Columbia Business School and met Mr Benjamin Graham which turned his life around. He learnt that investment is not just looking at mere graphs,number or growth rate. It's the art of forseeing the future by means of business value,asset valuation and availability at the right price.The investment we do now-a-days involves looking at charts, to see uptrend and downtrend in a company, divident and P/E ratios. Well Mr. Warren Buffett is exactly the opposite, He invests in company by following these attributes

1. Stick to businesses you thoroughly understand.

2. Avoid risk by only investing in companies whose future cash flows are certain.

3. Only buy shares in companies if you expect above average returns.

4. Only buy if you can get shares for less than they are worth.

5. Concentrate on value, not price.

6. Ignore short term market sentiment.

7. Do not churn your portfolio.

8. If you make a mistake, learn from it.   

                  One thing we should definitely learn from Mr Warren buffet is that he sticks to the company he invests for a long time & stays as long away as possible from Wall street.

“Price,” he has said, “is what you pay. Value is what you get.”

              He worked for different trading companies after he graduated. He brought a house in Omaha where he still lives. Later in 1962 asked one of his partners, a doctor, to find ten other doctors willing to invest $10,000 each in his partnership. Eventually eleven agreed, and Buffett pooled their money with a mere $100 original investment of his own. This investment led to the formation of Berkshire Hathaway,a company now worth US$ 427.452 Billion over the course of 50 years. For example a person who invested US$10,000 in 1962 got a return of  US$50 million. Thats how staggering the growth was.

                  Imagine a person with US$ 53 Billion in pocket still lives in the same house,drives the same car and even dines at the same restaurant like he did when he was 30.He is a person of great nature,down to earth personality and humility ,even though he being the richest person on earth did not want his siblings to follow his footsteps. He wanted them to make their own future and just gave them some money to startup their own career. Thats how amazing he is, he might show up for a business meeting with ice cream,singing songs and dancing with his coke. He gave away 83% of his earning to charity through Bill and Melinda gates foundation.

"I don't believe in dynastic wealth", Warren Buffett said, 

calling those who grow up in wealthy circumstances "members of the lucky sperm club".

                 The company wholly owns GEICO, BNSF, Lubrizol, Dairy Queen, Fruit of the Loom, Helzberg Diamonds and NetJets, owns half of Heinz, owns an undisclosed percentage of Mars, Incorporated and has significant minority holdings in American Express, Goldman Sax The Coca-Cola Company, Wells Fargo, and IBM to name a few.

                 I just know too much of him which i cannot just pen it down.Try googleing him. You would find a lot of funny and intresting things that could eventually make you a millionaire one day.He is one such inspiration I look upto and easily my role model.