This is how Warren Buffett makes his money. He is an investor and a businessman with a career in economics. He knew that investing the capital of Berkshire Hathaway will give him a good return. He also had a very important partner for fifty years, Charlie Munger. He began his investment partnership in 1956 with a capital of $105,000.
In addition, Warren Buffett worked at Graham-Newman, he was an investment partner, and only risk $700 of his own money and when the partnership ended the worth of his investment reach 20 million. The assets of the company in 1969 were 100 million.
He also manages a hedge fund, the Buffett Partnership Limited, and as a General Partner, he collects 25% of the gains. Warren Buffett made his money by investing in stocks, work-outs, and control situation but also with undervalued securities. Therefore, after Buffett Partnership Limited was sold, he received shares in Berkshire Hathaway, but, also shares from different companies that merged in Berkshire. He also operates the Insurance Business of the company.
Consequently, Warren Buffett made the most of his money by being a general partner. He is very intelligent and knows how to run his business and his investments. He always got a good return on his partnerships. However, he needed to trust others and delegate responsibilities to manage and handle the day to day operations. Meanwhile, he bought stocks in companies and hold them for long-term investments.
He has been a genius in making money, he knows exactly when to buy and when to sell. Warren Buffett is a philanthropist an entrepreneur and a successful investor.