Question

Warren Buffett is one of the most well known and l respected minds in the finance industry. Let's research him this week. How did he rise to fame? Interesting stories? The firm he works for... lets see what we can bring out on this topic

Answer 1

Warren Buffet was born on August 30, 1930 in USA. He is third richest man in the world with net worth of $83 Billion. He made his money by investing into stocks. His firm's name is Berkshire Hathaway. He got biggest success in investing into stocks, he used to buy the undervalued stocks and keep it for longer period and whenever stocks go up, he would sell. He also used to do averaging at lower levels if stock that he has bought, comes down.

When he was six years old, he bought 6 packs of Coca-Cola for 25 cents and resold it with a profit of 5 cent per bottle. When he was eleven years old, he bought shares of Cities service at $38, this share fell down to $27 but when it reached to $40, Warren buffet sold it, later on the same stock goes up to $200 then Warren Buffet regretted and he learnt the lesson that in stock market, one has to keep patience.

He did his graduation then he moved to Columbia where he found his mentor named "Ben Graham", he learnt many lessons from him, after that, He started his journey with Berkshire Hathway by buying shares of the same.

At the time of recession, Warren Buffet lent money to many financial companies including Bank of America, Goldman Sachs, American Express, Wells Fargo etc. and after ten years, those companies as well as Buffet made a very good profit. He bought Berkshire Hathaway's shares at very low price and kept them, now the same share is selling at $309500. He made all his money from stocks and investing. He used to study the company's financials and fundamentals, he used to do his own calculations and then used to buy value stocks.