Warren Buffet is considered the best investor of all times. Here are some mind-blowing facts about him.
- 99% of Warren Buffett’s wealth was earned after his 50th birthday. At first glance, this fact doesn’t seem to make any intuitive sense. How does an 85-year-old who has been investing since he was 11 make essentially all of his wealth after age 50? Were the first 39 years of his investing career just wasted? No. This is just the nature of compounding over long periods of time. We humans have a poor intuitive grasp of how compound interest works over long time periods, and so this fact seems like it can’t be true. But for Buffett, this was anything but fantasy. Because he understood the math from an early age, this was essentially a preordained outcome for him.
- Berkshire Hathaway owns 50-60 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds meetings or calls them on a regular basis. He has given his CEO’s only two rules:
- Rule number 1: Do not lose any of your shareholder’s money.
- Rule number 2: Do not forget rule number 1.
- Warren Buffett is an Introvert. Yes! The world best businessman is an introvert. During inception of his career, he even took course of public speaking. He admitted in one of the interview that the public speaking class helped him to propose his wife.
- Buffett and Charlie Munger, who is the vice chairman of Berkshire Hathaway, both worked in the same grocery store in their teens growing up in Omaha, but at different times, before they knew each other.
- Bill Gates met him for the first time only 5 years ago and did not think he had anything in common. He had scheduled his meeting only for half hour, but when he met Warren, the meeting lasted for ten hours.
- Buffett didn’t like working for his father’s brokerage firm because he believed there was a conflict of interest. The brokerage made money when client’s transacted more while client’s made money when they bought and held which resulted in less transaction costs for them.
- When someone asked Warren Buffett, what do you think about the 1987 stock market crash? He replied as: ‘’
- Buffett displayed an interest in making and saving money. He went door to door selling chewing gum, Coca-Cola, or weekly magazines. For a while, he worked in his grandfather’s grocery store.
- While still in high school he was successful in making money by delivering newspapers, selling golf balls and stamps, and detailing cars, among other means.
- Filing his first income tax return in 1944, Buffett took a $35 deduction for the use of his bicycle and watch on his paper route.
- At the age of 11, he bought three shares of Cities Service Preferred for himself, and three for his sister.
- While in high school he invested in a business owned by his father and bought a farm worked by a tenant farmer.
- By the time he finished college, Buffett had accumulated more than $90,000 in savings measured in 2009 dollars.
- Buffett’s father was Republican congressman who favoured the gold standard. Buffett is neither a republican nor favours gold standard.
- He does not socialize with the high society crowd. His pastime after he gets home is to make himself some popcorn and watch television
- Berkshire annual general meeting is the only AGM that makes money.
- He became a billionaire in 1985 where his company’s stocks were worth $2000/share
- Still lives in the same house he bought 50 years ago
- He bought a small farm at age 14 with savings from delivering newspapers
- He bought his first share of stock at age 11
- He never travels by private jet, although he owns the world’s largest private jet company
- Buffett is giving almost all of his money to charity, not his children.
- He used to always wear different shoes on each foot and never noticed.
- Buffett plays bridge online at least four times a week.
- Buffett disowned his granddaughter.
- Buffett owns relatively few stocks — but those he owns, he tries to hold ‘forever.’
If you enjoyed this article, share it with your most favourite friends!
Please share your thoughts, ideas and comments below!
© Copyright 2017 by It’s My Footprint, www.itsmyfootprint.com.