How Did Warren Buffett Get So Rich ?

Warren Buffet is a great investor and among the most successful businessmen in the world. Unlike many successful individuals, his tremendous investment started right at a tender age and engaged in charity. He is the core founder of the Buffet partnership limited that started in 1956 and later got control of the Berkshire Hathaway textile company. He is happily married with three children and according to recent statistics, the great entrepreneur has a stipulated net worth of $84 billion.

Warren studied business at the University of Pennsylvania and later a master’s degree in Economics at the University of Pennsylvania. He sold securities for Buffet –Falk and also worked for Graham at Graham Newman Corp. He used some strategies and techniques that he had learned from Graham to recognize the undervalued companies to become rich and one of the companies under scrutiny was the Berkshire Hathaway.

Buffet Partnership Company was also successful but he decided to abandon it and eyed towards the progress of the Berkshire Hathaway. The department of textile manufacturing was terminated and he bought assets in media, oil, and insurance so as to expand the company. There is a lot of subsidiary in the Berkshire investments but gold is never given a priority for him.

Coca-cola is the third largest stock investment of Mr. Warren Buffett and owns 400,000,000 shares. Coca-cola has 20 different brands and makes an annual profit of more than one billion. Apart from holding many shares in the different companies, he has also served as the director of Graham Holdings Company, Citigroup Global Market holdings, and Gillette Company.

Warren Buffett has been proved to be smart in choosing the company to invest in and this has made him be very successful in his ventures. Value investing principles are more important when making an investment decision in that the company should be sensibly priced, good management, excellent returns on equity and consistent earning power. What an entrepreneur!

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