Warren Buffett is the American business magnate investor and philanthropist. He is currently the CEO and chairman of Berkshire Hathaway. He is the living legend of investing and a finance advisor. He is one of the top 5 richest persons in the world from last 20 years.
World's biggest presidents and Business Tycoons take financial advices from him. He reads daily 10 to 12 hours. Once upon a time, he went to study in Harvard University but he was rejected there and today the Harvard University is teaching his case study to its students.
He bought his first share in life at the age of 11 at a price of $38. After some days the price of this share fall and again rise to $40. He sold these shares at $40 and after some days the price of share was reached $200. At that time, he learnt that Long term investment is the key to success.
At the age of 16, he had earned $53,000 while his other friends were playing baseball at that age. At the age of 17, once he went to took a haircut at salon. He had to wait there, then he got a new idea that the persons have to wait at salon. He purchased a pinball machine and went to the salon and made a deal with the barber. From this idea, the barber got new customers and Warren got profit. After sometime he fixed pinball machines in all the salons of Washington DC. He had earned the $950 in one year.
He had donated more than $35 billion since 2006. He is living in his old house from last 50 years. He workout daily for atleast 30 minutes. He is the best friend of Bill Gates. Bill gates said,“ Pick up your associates whose behaviour is better than you and that will give you a drift in your direction of life.” Bill gates has learnt two things from Warren Buffett that is lifetime learning & lifetime laughing.
Warren Buffett has a mentor- Benjamin Graham from whom he has learnt various things in his life. Benjamin Graham was very expert in the knowledge of investment. Warren Buffett was only his student who recieved A+ grade in the test. After sometime he started working with his teacher. He had started to understand the Standard & poor's report, investment opportunities, P&L reports and Cash flow statement. He is a very focused and determined person. But After sometime Warren Buffett has some issues with the Benjamin Graham. Benjamin believed that only quantitative methods and number of company is enough but
Warren Buffett believed that quantitative and qualitative both measures are important to find out growth of company. We should find out the manpower, business, competition, location, leadership skills, business model, economic model, competitive advantage and many more before investing in any company. He advised that if you want to invest than find a company who has a strong and long term sustainability. Don't check the price first, check the return on equity, historical performance of the company and check that there is any debt on company or not. Do the whole research of the company before investing and then invest in it.
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